in-depth study of investor's perception towards investment in various alternatives

In-depth Study of Investor’s Perception towards Various Investment Alternatives.

Chapter 1


Introduction

Investment involves making of a sacrifice in the present with the hope of deriving future benefits.

Two most important features of an investment are current sacrifice and future benefit. Investment is

the sacrifice of certain present values for the uncertain future reward. Investment may be defined as

an activity that commits funds in any financial/physical form in the present with an expectation of

receiving additional return in the future. The expectation brings with it a probability that the quantum

of return may vary from a minimum to a maximum. This possibility of variation in the actual return is

known as investment risk. Thus every investment involves a return and risk. A proper planning and

analysis should be done in order to reach to the perfect decision of investment or portfolio

management.

Indian financial system is considered as one of the most powerful economic system among the world

markets. Many of the investment agreements are made by the Indian government to increase the

investment in the country in various sectors.

Indian financial system is the result of effective governance and proper control of the country’s

supreme monetary authorities. i.e. Reserve Bank of India (RBI) and Securities Exchange Board of

India (SEBI).

Various Governing Bodies regulates the Indian Financial System are as follow:

Reserve Bank of India is the supreme authority and regulatory body of all the monetary

transaction in the country. RBI is the regulatory body for various banking and non-banking

financial institutions in the country.


SEBI is the supreme authority and regulatory body for the India’s capital market.

Insurance Regulatory and Development Authority is the apex statutory body which regulates the

Insurance companies in India.

Association of Mutual funds in India regulates all the mutual fund companies in India.

Foreign Investment Promotion Board regulates all the foreign direct investment made in India

in various sector.

Ministry of Finance and the government of India has the controls on all the above governing bodies

established in country for the regulation of the money and non-monetary instruments in the country.

Investments are normally classified into five category using risk and return relationship in the Indian

Financial System. There are various other factors like risk, return, period of Investment, safety, past

performance etc. which affect the investment decision and also the selection of investment

alternative.


Various Alternative Available in India for Investment are classified as follows:

1. Low Investment Alternative

Saving Account

Bank Fixed Deposits

National Saving Certificates

Government Securities

2. Moderate Investment Alternative

Mutual Funds

Insurance

Bonds/Debentures

3. High Investment Alternative

Equity Shares

Commodities

FOREX Market

4. Traditional Investment Alternative

Residential And Commercial Real Estates

Bullions

5. Emerging Investment Alternative

Hedge Funds

Art/ Passion

Venture Capital

Description of Available Investment Alternative in India:

.Savings Account

A savings account is a deposit account held at a bank or other financial institution that provides

principal security and a modest interest rate. Depending on the specific type of savings account, the

account holder may not be able to write checks from the account (without incurring extra fees or

expenses) and the account is likely to have a limited number of free transfers/transactions. Savings

account funds are considered one of the most liquid investments outside of demand accounts and cash.


In contrast to savings accounts, checking accounts allow you to write checks and use electronic debit

to access your funds inside the account. Savings accounts are generally for money that you don't

intend to use for daily expenses.

Bank Fixed Deposits

A fixed deposit (FD) is a financial instrument provided by banks which provides investors with

a higher rate of interest than a regular savings account, until the given maturity date.

National Savings Certificates

National Savings Certificates, popularly known as NSC, is an Indian Government Savings

Bond, primarily used for small savings and income tax saving investments in India. It is part of the

postal savings system of Indian Postal Service (India Post).


A government security is a bond issued by a government authority with a promise of

repayment upon maturity. Government securities such as savings bonds, treasury bills and notes also

promise periodic coupon or interest payments. These securities are considered low-risk, since they are

backed by the taxing power of the government.

Mutual Funds

A mutual fund is a pool of money from numerous investors who wish to save or make money

just like you. Investing in a mutual fund can be a lot easier than buying and selling individual stocks

and bonds on your own. Investors can sell their shares when they want.

Insurance

Insurance is a contract, represented by a policy, in which an individual or entity receives

financial protection or reimbursement against losses from an insurance company. The company pools

clients' risks to make payments more affordable for the insured.

Insurance policies are used to hedge against the risk of financial losses, both big and small, that may

result from damage to the insured or her property, or from liability for damage or injury caused to a

third party.


Bonds

The investor purchases debt issued by companies or governments which promises to pay an

annual return until the debt is repaid. The value of the investment changes as the level of general

interest rates fluctuates, causing the bond to become more or less valuable.

Equity or Stocks

Equity shares are the main source of finance of a firm. It is issued to the general public. Equity

shareholders do not enjoy any preferential rights with regard to repayment of capital and dividend.

They are entitled to residual income of the company, but they enjoy the right to control the affairs of

the business and all the shareholders collectively are the owners of the company.

Commodities

A commodity is a basic good used in commerce that is interchangeable with other commodities

of the same type. Commodities are most often used as inputs in the production of other goods or

services. The quality of a given commodity may differ slightly, but it is essentially uniform across

producers. When they are traded on an exchange, commodities must also meet specified minimum

standards, also known as a basis grade.

FOREX Market

Forex (FX) is the market in which currencies are traded. The forex market is the largest, most

liquid market in the world, with average traded values that can be trillions of dollars per day. It

includes all of the currencies in the world.

Real Estate

Real estate is property comprised of land and the buildings on it as well as the natural resources

of the land including uncultivated flora and fauna, farmed crops and livestock, water and minerals.

Although media often refers to the "real estate market" from the perspective of residential living, real

estate can be grouped into three broad categories based on its use: residential, commercial and

industrial.

Bullions

Bullion is gold and silver that is officially recognized as being at least 99.5% pure and is in the

form of bars or ingots rather than coins


Hedge Funds

Hedge funds are alternative investments using pooled funds that may use a number of different

strategies in order to earn active return, or alpha, for their investors.

Venture Capital

Startup companies with a potential to grow need a certain amount of investment. Wealthy

investors like to invest their capital in such businesses with a long-term growth perspective. This

capital is known as venture capital and the investors are called venture capitalists.

What is Perception?

Perception is the process through which an individual selects, organizes and interprets the

information he receives in order to do something that makes sense. The perception of a situation at a

given time may decide if and how the person will act.

Depending to his experiences, beliefs and personal characteristics, an individual will have a different

perception from another.

Factors affecting the investor perception in investment in various alternatives.

Following are the factor which affects the investor’s perception:

Income

Your income is an important determinant of gauging your risk tolerance. If your income is high

enough, you will not mind taking higher risks while taking investment decisions and vice-versa. This

is because small setbacks in your portfolio will not affect your ability and capability to invest.

Expenses

Your outgoings also influence the risk which you can afford to take while investing. Thus although

you may be having a high income, but your disposable income is petite you could be refrained from

taking high risk. Hence it is imperative for you to streamline unnecessary expenses, so as to keep your

financial health in pink.

Age

Investors risk appetite generally declines with age. This is primarily because as the investor

matures in age and reaches retirement, he psychologically cannot tolerate high volatility in his

portfolio. Any dips in his investment value will lead to erosion of his retirement corpus. On the other

hand, a young investor can comparatively take higher risks as he has a larger number of working years


before he retires. He has ample amount of time and opportunities to recover from any possible

setbacks in the value of his portfolio.

Your past experience:

If you have a good experience about any product in the past, you tend to become more comfortable

with repetitive buying. If you have earned success in beating champs in derbies you wouldn't mind

betting even on dark horses. Same goes true in case of investments. Those who have earned

substantially high returns previously would have a heart to take more risk.

Knowledge

This is one those rare assets which may never lose their value. A thorough knowledge about

something increases your awareness. Becoming aware about good and bad effects completely would

push your risk appetite up. In primitive stage of development, man knew little about fire and was as

apprehensive to it as any other animal. However, once he become aware about possible positive

changes that fire may bring to his life; he started using it to his benefit.

Service Quality

Even in the case of goods that exhibit numerous flaws, excellent service quality can often

overshadow a negative experience with the product itself. If a consumer feels that he receives

exceptional attention when encountering a problem with a product, that consumer is somewhat more

likely to trust the brand or product knowing that the manufacturer or retailer provides a prompt and

effective response to problems. Humans are social animals and their consumer behavior is often

determined by the social relationships that surround a product, including interactions with customer

service representatives.

Brand

A brand is a set of marketing and communication methods that help to distinguish a company from

competitors and create a lasting impression in the minds of customers.

Attitudes

The perceiver’s attitudes affect perception. For example, suppose Mr. X is interviewing

candidates for a very important position in his organization – a position that requires negotiating

contracts with suppliers, most of whom are male. Mr X may feel that women are not capable of


holding their own in tough negotiations. This attitude will doubtless affect his perceptions of the

female candidates he interviews.

Moods

Moods can have a strong influence on the way we perceive someone. We think differently when

we are happy than we do when we are depressed. In addition, we remember information that is

consistent with our mood state better than information that is inconsistent with our mood state. When

in a positive mood, we form more positive impressions of others. When in a negative mood, we tend to

evaluate others unfavorably

Motives

Unsatisfied needs or motives stimulate individuals and may exert a strong influence on their

perceptions. For example, in an organizational context, a boss who is insecure perceives a

subordinate’s efforts to do an outstanding job as a threat to his or her own position. Personal insecurity

can be translated into the perception that others are out to "get my job", regardless of the intention of

the subordinates.

Interest

The focus of our attention appears to be influenced by our interests. Because our individual

interests differ considerably, what one person notices in a situation can differ from what others

perceive. For example, the supervisor who has just been reprimanded by his boss for coming late is

more likely to notice his colleagues coming late tomorrow than he did last week. If you are

preoccupied with a personal problem, you may find it hard to be attentive in class.

Cognitive Structure

Cognitive structure, an individual’s pattern of thinking, also affects perception. Some people have

a tendency to perceive physical traits, such as height, weight, and appearance, more readily. Others

tend to focus more on central traits, or personality dispositions. Cognitive complexity allows a person

to perceive multiple characteristics of another person rather than attending to just a few traits.

Expectations

Finally, expectations can distort your perceptions in that you will see what you expect to see. The

research findings of the study conducted by Sheldon S Zalkind and Timothy W Costello on some

specific characteristics of the perceiver reveal


· Knowing oneself makes it easier to see others accurately.

· One’s own characteristics affect the characteristics one is likely to see in others.

· People who accept themselves are more likely to be able to see favorable aspects of other people.

· Accuracy in perceiving others is not a single skill.

These four characteristics greatly influence how a person perceives others in the environmental

situation.

Habit

Habits die hard and therefore individuals perceive objects, situations and conditions differently

according to their habits. A Hindu will bow and do Namaskar when he sees a temple while walking on

road, because of his well-established habit. These are several instances in life settings where

individuals tend to react with the right response to the wrong signals. Thus a retired soldier may throw

himself on the ground when he hears a sudden burst of car tyre.

Learning

The state of learning influences and plays a crucial role in the perception process. However, it

should be recognized that the role of learning is more pronounced in respect of complex forms of

perception where the symbolic content creeps into the process. Although interrelated with motivation

and personality, learning may play the single biggest role in developing perceptual set.

Economic and social background

The employee perceptions are based on economic and social backgrounds. Socially and

economically developed employees have a more positive attitude towards development rather than less

developed employees.

Personality

The personalities of the perceiver as well as the stimulator have an impact on the perception

process. The age, sex, race, dress, etc of both the persons have a direct influence on the perception

process.


Investing Decision at Different Stages of Life

The following are some major life events that most of us share, and some investment decisions that

you may want to consider:

When you get your first "real" job:

Start a savings account to build a cash reserve.

Start a retirement fund and make regular monthly contributions, no matter how small.

When you get a raise:

Increase your contribution to your company-sponsored retirement plan.

Invest after-tax dollars in municipal bonds that offer tax-exempt interest.

Increase your cash reserves.

When you get married:

Determine your new investment contributions and allocations, taking into account your combined

income and expenses.

When you want to buy your first house:

Invest some of your non-retirement savings in a short-term investment specifically for funding your

down payment, closing, and moving costs.

When you have a baby:

Increase your cash reserves.

Increase your life insurance.

Start a collecting fund.

When you change jobs:

Review your investment strategy and asset allocation to accommodate a new salary and a different

benefits package.

Consider your distribution options for your company's retirement savings or pension plan. You may

want to roll over money into a new plan or IRA.

When all your children have moved out of the house:


Boost your retirement savings contributions.

When you reach 55:

Review your retirement fund asset allocation to accommodate the shorter time frame for your

investments.

Continue saving for retirement.

When you retire:

Carefully study the options you may have for taking money from your company retirement plan.

Discuss your alternatives with your financial advisor. Review your combined potential income after retirement and reallocate your investments to provide

the income you need while still providing for some growth in capital to help beat inflation and fund

your later years.

Other than all above factor Risk and returns are two most important factors which affect the

investor perception towards investment in the various alternatives available in the market.

Risk

Risk—just the thought of it can give investors sleepless nights. However, through careful planning

for your financial future, you can help manage risk.

Risk is something you encounter every day. Even crossing a busy street involves some risk. With

investments, balancing risk and return can be a tricky operation. All investors want to maximize their

return, while minimizing risk.

Some investments are certainly more “risky” than others, but no investment is risk free. Risk can never

be eliminated, but it can be managed.

Types of risk

Capital Risk: Losing your invested monies.

Inflationary Risk: Investment’s rate of return doesn’t keep pace with inflation rate.

Interest Rate Risk: A drop in an investment’s interest rate.

Market Risk: Selling an investment at an unfavorable price.

Liquidity Risk: Limitations on the availability of funds for a specific period of time.


Legislative Risk: Changes in tax laws may make certain investments less advantageous.

Default Risk: The failure of the institution where an investment is made.

Return

Investment returns are the amount you may earn or lose on your investment. The amount is usually

expressed as a percentage per annum.

As risk and return are fundamentally linked, the greater an investment’s potential to achieve higher

returns, the greater the risk associated with it.

REQUIRED RETURN

Required return = Risk-free return + Risk premium

Risk-free return

The risk-free return is the return required by investors to compensate them for investing in a risk-free

investment. The risk-free return compensates investors for inflation and consumption preference, i.e.

the fact that they are deprived from using their funds while tied up in the investment. The return on

treasury bills is often used as a surrogate for the risk-free rate.

Risk premium

Risk simply means that the future actual return may vary from the expected return. If an investor

undertakes a risky investment he needs to receive a return greater than the risk-free rate in order to

compensate him. The more risky the investment the greater the compensation required. This is not

surprising and it is what we would expect from risk- adverse investors.


Table 1.showing Risk Vs Return of Various Investment Alternatives

Investment Alternative Investment Risk Level Returns

Saving Account Low Low Low

Fixed Deposit Low Low Low

National Saving Certificates Low Low Low

Government Securities Low Low Low

Mutual Funds Moderate Moderate Moderate

Insurance Moderate Moderate Moderate

Bonds Moderate Moderate Moderate

Equity High High High

Commodities High High High

FOREX High High Moderate

Real Estate High High Low

Bullions Moderate High High

Hedge Fund Moderate High Moderate

Art High Moderate Moderate

Venture Capital High Moderate High

Table 2 Expected Returns from various Investment Alternatives

Type of Alternative Expected Returns (in %)

Low Investment 7% -9.5%

Moderate Investment 8% -11%

High Investment 10% - 20%

Traditional Investment 5% -16%

Emerging Investment 8% -25%


Chapter 2


Angel broking limited is one of the leading and professionally managed stock broking firm

involved in quality service and research. Angel broking limited is a member of The Stock Exchange

Mumbai.

The membership of the company with The Stock Exchange Mumbai was originally in the

name of Mukesh. Gandhi, which was eventually turned into a corporate membership in the name of

Angel Broking Limited.

Angel Broking is managed by Mr. Dinesh Thakkar and he is well supported by the Mr.

Mukesh Gandhi, a fifteen year veteran in the market.

The group is well supported by the professional and qualified research team and efficient

operation and back office team, which comprises of highly dedicated and qualified individuals, Angel

has an in-house, state of art research department.

Angel believes in reaching out the customers at the farthest end rather than by reaching out to

them. The company in its endeavor to give its client the best opened up several branches all over

Mumbai, which are efficiently integrated with the head office.

Angel broking limited is primarily into retail stock broking with the customer base of retail

investors, which has been increasing at the compounded growth rate of 100% every year. The

company has the huge network sub-broker in Mumbai and other outside the Mumbai. Registered with

SEBI, who act as the channel partner for the company. The company presently has the total staff

strength of around 250 employees who spread over accordingly across the head office and all the

branches.


Angel has empowered its physical presence throughout the India through various strategies which

it has been adopting efficiently and effectively over a period of time , like opening of a branches at

different places, tie-ups with various agencies and sales agents, buy-out the smaller regional outfits

and appointment of the sub-brokers and franchisees. Moreover Angel Broking has been tapping and

including high net-worth and self employed individuals to its vast array of clients.

Angel has always strived in the direction of delivering ultimate client satisfaction and developing

stronger bonds with its customer and chose partner. Angel has a vision to introduce new products and

services regularly. Moreover Angel has been one among pioneer to introduce the latest technologies

innovations and integrate it within its own business.

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has

emerged as one of the most respected Stock-Broking and Wealth Management Companies in India.

With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real

Value for Money’ to all its clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange

(NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also

registered as a Depository Participant with CDSL.

History of Angel Broking

Entrepreneur Dinesh Thakkar started his business in 1987 with a capital of Five Lakhs Indian

Rupees and lost half of the money within eight months. In 1989, he started off again as a sub-broker.

Later, Angel Broking was incorporated as a wealth management, retail and corporate broking firm in

December, 1997. In November 1998, Angel Capital and Debt Market Ltd. gained membership of

National Stock Exchange as a legal entity. The company opened its commodity broking Division in

April, 2004. In November 2007, Birla Sun Life Insurance joined hands with Angel Broking for

distribution of its insurance products. In 2007. The World Bank arm International Finance Corporation

bought 18% stake in Angel Broking.


VISION & MISSION

Corporate Vision

To provide best value for money to investors through innovative products, trading/investments

strategies, state of the art technology and personalized service.

Corporate Mission

To have complete harmony between quality-in-process and continuous improvement to deliver

exceptional service that will delight our Customers and Clients.

Objectives

Fast paced, enriching career with exposure to best business practices

Fair compensation & opportunities for growth / promotion based on merit

Vibrant work culture and opportunities for training, recreation and social interaction

Progressive HR policies with an open door approach and proactive processes to maintain high

morale

Security of employment, subject to minimum acceptable performance

Awards & Achievement

2007-2009- ‘Major Volume Driver’ Award by BSE for 2007-2008

2009 - 'Broking House with Largest Distribution Network' Award and 'Best Retail Broking

House' Award at BSE IPF-D&B Equity Broking Awards

2012 - BSE IPF-D&B Equity Broking Award for ‘Best Retail Broking House’

2012-13 - Among BSE Top 10 Performers in Equity Segment (Retail Trading) FY 2012-13

2013 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest Distribution

Network’

2013 - BSE-IPF D&B Equity Broking Award for 'Best Retail Equity Broking House

2013-14 - Awarded ‘Top Three Clients Traded Members in Equity’ by the BSE

2014 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest Distribution

Network’


Organization Chart

Organization chart of Angel Broking Pvt Ltd.

Chairman

Managing Director

Zonal Manager

Regional Manager

Retail Marketing

Territory Manager

Branch Manager

Business Dev Manager

Sales Div Manager

Alternative Channel

Territory Manager

Branch Manager

Channel Executive

Operation Channel

Team Manager

Operation manager

Human Resource

HR Executives


Board of Directors-Profile

1. Mr. Dinesh Thakkar - Founder Chairman & Managing Director

The Angel group of companies is brought to life by Mr. Dinesh Thakkar. He ventured into stock

trading with an intention to raise capital of his own independent enterprise. However, he recognized

the opportunity offered the stock market to serve individual investors. Thus india’s first retail focus

stock broking firm house was established in 1987. Under his leadership, Angel become the first

broking house to embrace new technology for faster , more effective and affordable services to retail

investor.

Mr. Thakkar valued for his understanding of the economy and the stock market. The print and

electronic media often seek his view on the market trends as well as investing strategies.

2. Mr. Lalit Thakkar – Director Research

Mr. Lalit Thakkar is the motivating force behind the Angel’s highly acclaimed research team. He’s

been a part of the senior management team since the Angel group inception. His technical and

fundamental outlook has provided impetus to Angel’s market research team. Research based &

personalized advisory services are Angel’s forte and Mr. Lalit Thakkar has undoubtedly been the brain

behind it.

When it comes to analyzing the market he is truly genius. His hand-on experience and fundamental

knowledge of the market can predict the market trend early. His view on the market trend is often

quoted in the print and electronic media.

3. Mr. Vinay Agrawal – Executive Director Equity Broking

He leads the equity broking business at Angel, which comprises Business development, Operation,

Product Development and E-broking initiative. He is actively involved in exploring new ways to adopt

technology for business enhancement.

A chartered accountant by qualification, Mr. Agrawal began his career with Angel Group as Finance

and Operations consultant and since then he’s quickly climbed up the corporate ladder.


Other Major Executive of Angel Broking:

Name Designation

Mr. Gagan Singla Chief Marketing Officer

Mr. Ketan Shah Ass. Director : IT & B2B Business

Mr. Santanu Syam Chief Operating Officer

Mr. Suhash Menon Chief : Human Resource and Learning

Mr. Vineet Agrawal Chief Finance Officer

Mr. Naveen Mathur Ass. Director : Research & Advisory

Angel Products & Services

Products of Angel Broking Pvt Ltd.

Product

Equity

Derivatives

Commodities

Currency Trading

Mutual Funds

Insurance


Services of Angel Broking Pvt Ltd

1. Equity

Investing in shares or stock market is inarguably the best route to long-term wealth

accumulation. However, it can also be a very risky proposition due to high risk-return trade-off

prevalent in the stock market. Hence, it is more appropriate to take help of an experienced and

trustworthy expert who will guide you as to when, where and how to invest.

Angel provides guidance in the exciting world of stock market with suitable trading solutions and

value-added tools and services to enhance your trading experience.

2. Derivatives

The derivative segment is a highly lucrative market that gives investors an opportunity to earn

superlative profits (or losses) by paying a nominal amount of margin. Over past few years, Future &

Options segment has emerged as a popular medium for trading in financial markets. Future contracts

are available on Equities, Indices, Currency and Commodities.

Services

Depository Services

Intraday Tips

Demat Account

Portfolio Management

NRI Services

Advisory Management

Trading Account


Angel with its membership as Trading and Clearing Member of NSE F&O Segment and BSE

Derivatives Segment, provides you a gateway to the exciting world of derivative market.

3. Commodities

Commodities Derivative market has emerged as a new avenue for investors to create wealth.

Today, Commodities have evolved as the next best option after stocks and bonds for diversifying the

portfolio. Based on the fundamentals of demand and supply, Commodities form a separate asset class

offering investors, arbitrageurs and speculators immense potential to earn returns.

Angel aims to harness the immense potential of the Commodities market by providing you a simple

yet effective interface, research and knowledge.

4. Life Insurance

Ensure your family’s well-being by securing their future with a life insurance policy. No

financial planning is complete without life insurance. Angel offers an array of life insurance products

like Term Plans, Endowment Plans, Money back Plans, Children Life Insurance Plans and ULIP Plans

to meet your individual insurance requirements.

5. Mutual Funds

Investing in a Mutual fund is an excellent way of diversifying risk as well as portfolio. Angel

presents its Mutual fund services that strive to meet all your mutual fund investment needs. We have a

wide spectrum of investment schemes from all top mutual fund houses.

Angel also provides recommendations based on in-depth research, mutual fund performance and

mutual fund ratings to help meet your investment goals.

6. Depositary Services

Enjoy the dual benefits of trading and depository services under one roof and experience

efficient, risk-free and prompt depository service. Angel is registered as a Depository Participant with

CDSL. We are also a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE)

and the two leading Commodity Exchanges in the country–NCDEX & MCX.

7. Portfolio Management

Portfolio Management Service is a highly customized service offering a range of investment

options best suited in the current market scenario. Angel offers professional Portfolio Management

Service (PMS) to HNI’s who seek customized solutions to realize their investment goals. Our Portfolio


Managers are equipped to design an investment portfolio across various investment avenues like

Equities, Fixed Deposits, and Bonds etc. in sync with your unique needs.

8. Currency Trading

The global increase in trade and foreign investments has led to inter-connection of many

national economies. This and the resulting fluctuations in exchange rates, has created a huge

international market for Forex rendering investors another exciting avenue for trading. The Forex

market offers unmatched potential for profitable trading in any market condition or any stage of the

business cycle.

9. NRI Services

Living in a foreign country never weakens the thread that binds you to your homeland. Angel

Broking understands the varied needs of the NRIs and value their patronage. We offer a bouquet of

products and services for NRIs.

10. Investment Advisory Management

Even a seasoned investor knows that effective timing of markets is not possible. Therefore,

professional and expert advice is essential to generate superior returns from the stock market.

At Angel, we offer you investment advisory services with ternary objective of superior returns, risk

minimization and portfolio diversification. Supported by a highly specialized and dedicated Research

team, Angel follows a client-centric approach to offer customized solutions.

11. Demat Account

Demat Account came into existence in India in 1996, stocks and shares were issued and traded

in physical paper form. With the age of computers and Technology, shares and securities are held

electronically in a Dematerialized form (Demat Account), instead of the investor taking physical

possession of certificates. It allows you to buy, sell as well as transact conveniently without the need

of any paperwork.

12. Trading Account

The trading account is used mainly for buying and selling of shares. An investor doesn’t

require a trading account to store shares and in certain cases when their trading is done by another

individual trader or company.

The bank account should be linked to the investor’s trading account to carry out monetary


transactions. An online trading account provides a secure platform to do share trading with advanced

security features.

An online trading account usually comes with add-on software for PC and mobile apps for trading

anytime, anywhere. These high-end technology solutions are specially designed with an intuitive user-

interface for making expert trading decisions. Some of the features of a trading account software

application are Portfolio tracker, tick-by-tick updates, interactive charts etc.

Investment Brokers/Advisors provide personalized advice to investors who open a trading account

with them at competitive brokerage charges.

13. Intraday Trading Tips

Intraday Trading, also known as Day Trading, is a simple process of buying and selling stocks

on the same day instead of waiting for delivery after 2 days. Otherwise, people trading in stock

markets who buy stocks get the delivery in their demat account after the settlement process is over,

which takes 2 days (T+2) from the day transaction takes place.

Customer Retention Management

Customer Retention Management System

Customer Retention

Management

Rewards Program

Customer Services

Customization

Community Building

Frequency Loyalty

Program


Chapter 3


Definition of Investment

Investment involves making of a sacrifice in the present with the hope of deriving future

benefits. (Dr. K. Sowmya , J. Mounika Reddy , 2016)

Investment is a conscious act of an individual or any entity that involves development of

money in securities or properties issued by any financial institutions with the objective of high

returns with in a definite period of time. (G. Velmurugan ,V. Selvam, N. Abdul Nazar ,

2015)

Investment is considered the sacrifice of certain present value of money in anticipation of a

reward. (V.Alagu Pandian, G.Thangadurai, 2013 )

Investment – parking of funds (current) to earn benefits or securing growth in future can be

termed as Investments. It is a sacrifice from current income to gain returns at a later stage/date.

(Dr.Priyanka Jain, 2012)

Perception

Selecting, organizing and interpreting information in a way to produce a meaningful experience of

the world is called perception. (Ms. Anitha, D. Phani Bhargavi, 2014)

Investor

An investor allocates capital with the expectation of a future financial return.

Investors’ perception

Investor’s perception refers to the choosing, purchasing and consumption of goods and services for

the satisfaction of their wants. ( Dr. K. Sowmya , J. Mounika Reddy, 2016)

Investors can be classified into three categories.

a) Risk Averters

As the term indicates risk averters do not invest in risky assets. These investors prefer to invest

in Government securities, Life insurance policies and Unit Trust Certificates.


b) Risk Moderates

Risk moderates (Risk neutrals) are willing to pay for making an investment provided they get

return of an equal value. They invest in common stocks and life policies.

c) Risk Takers.

Risk takers’ chief aim is getting higher return for their investments. They believe in high return

for a greater risk. They prefer to invest in common bonds, convertible securities. (Ramprasath

S., Dr. B. Karthikeyan, 2013 )

Alternative investments

Alternative investments are sometimes used as a tool to reduce overall investment risk

through diversification.( Ashly Lynn Joseph, Dr. M. Prakash, 2014)

Factors Affecting Investor Perception while investing in various alternative

Culture

Basically, culture is the part of every society and is the important cause of person wants and

behavior. The influence of culture on buying behavior varies from country to country therefore

marketers have to be very careful in analyzing the culture of different groups, regions.

Motivation

The level of motivation also affects the buying behavior of customers. Every per son has

different needs such as physiological needs, biological needs, social needs etc

Age

Age and life - cycle have potential impact on the consumer buying behavior. It is obvious that

the consumers change the purchase of goods and services with the passage of time.

Past market trends

Sometimes history repeats itself; sometimes markets learn from their mistakes. The investors

need to understand how various asset classes have performed in the past before planning for

their finances.


Risk appetite

The ability to tolerate risk differs from person to person. It depends on factors such as the

individual financial responsibilities, environment, basic personality, etc. Therefore,

understanding the investor’s capacity to take on risk becomes a crucial factor in investment

decision making.

Risk appetite shows the capacity of an investor to bear losses related to his investments.

(Dr.Priyanka Jain, 2012)

Investment horizon

It is the period that the investor can keep his money invested. The longer the time-horizon, the

greater are the returns that should be accepted. Further, the risk element reduces with time.

Investible surplus

It basically refers to how much money is the individual able to keep aside for investments. The

investible surplus plays a vital role in selecting from various asset classes as the minimum

investment amounts differ and so do the risks and returns.

Investment need

It refers to how much money does the investor needs at the time of maturity. This helps the

investor to determine the amount of money that they need to invest every month or year to

reach the magic figure.

Expected returns

The expected rate of returns is a crucial factor as it will guide the choice of investment. Based

on the investors’ expectations, the investor can decide whether they want to invest heavily into

equities or debt or balance their portfolio. (Ms.Anitha, D. Phani Bhargavi ; Ashly Lynn

Joseph, Dr. M. Prakash, 2014)

Awareness

Awareness is a continuing process by which investors come to learn about the investment

particulars. In certain cases they try to know about the modes clearly and eventually adopt it or

reject it. Awareness is commonly described as the first step in the process of investment. (V.G

Murugan, 2012)


Risk

Risk = Probability of Negative x Importance of consequences occurring negative consequences

( w.r.f Peter and Ryan 1976)

Types of Risk

Financial Risk: Cost of shopping in relation to one’s own resources. Especially when

individual pays more than the product worth.

Social Risk: Loss of self esteem due to the reputation of store from your social group family

and friend.

Physical Risk: It refers to unsafe product or shopping experience, the level of energy and

exertion expended on shopping and threats to health.

Psychological Risk: Disappointment from store shopping which is not match to self image.

Time Risk: Refers to time to search out the right product in the store or compensate the

product failure. (Shaheera Amin, Syeda Shawana Mahasan, 2014)

(Dr. E. Apparoa , Prof.N.Kishore Babu , 2015 and Ramprasath S. , Dr. B. Karthikeyan) studied

in their study that factors like demographics factors , education level ,PE ratio, firm reputation , stock

marketability, awareness about the investment, sources of information, purpose of investment, and

motives of investment mainly affects the perception of investor in investing and also found that

majority of investor obtain the information from their friends & relatives and invest their fund in the

safest alternatives like bank deposits and other low risk alternatives. They also concluded that prime

motive of investor is to obtain regular income followed by profit, capital appreciation and returns with

safety.

(Patel Marteen H. 2015) In his study entitled as “Customer Perception Regarding Investment in

Different Investment Avenues “ studied the investor awareness about the investment avenues

available to invest and also found that factors like education level , period of investment , sources of

information affects the investor perception towards the investment and concluded that majority of the

respondent are aware about the equity , mutual funds , government securities and bank deposit as a

investment avenue for investing their funds and they prefer less than 1 to 5years tern for investment

and they are also recommending to other also.


(Ms.Anitha, D. Phani Bhargavi, 2014) in the research entitled under “Investors’ Perception

towards Investment” concluded their study with conclusion that demographic factors influences the

investor perception. Risk play vital role in investment while factors like culture, motivation and

attitude also influences the investor decision of investment. And also studied that Gender affects the

decision in a manner that females have less risk preference than males.

(Prof. Gauri Prabhu , Dr. N. M. Vechalekar) (Rajesh Kumar, Nitin Goel ) (Sandeep Bansal,

2014) observed that factors such as Age, occupation, preference , income , returns , risk and

motives of investment affects the perception of investor in taking investment decision and

concluded their study with conclusion that most of investor are aware about the mutual fund

schemes. Diversifications of portfolio and tax benefits are main motives to invest in mutual fund

while Returns are the important reason in investing the fund in Mutual fund.

(G. Velmurugan ,V. Selvam,N. Abdul Nazar , 2015) study in the research entitled as “ An

Empirical Analysis on Perception of Investor’s towards Various Investment Avenues” concluded

that investment done in various avenues with expectation of capital appreciation and regular returns.

When common man thinks about the investment he will never go for risky plan. In present scenario,

share and gold investment are highly uncertain and unpredictable so investor should analyze the

market cautiously and then make investment decision.

(Dr. B. Vijaykumar , 2015) observed that factors like Risk, security , return performance , period of

investment, satisfaction , futuristic goal effect the investor’s perception towards the investment in the

equity market and also find that age and income of individual doesn’t influence the perception of

investor while satisfaction level of investor is much influenced by perception and safety is considered

as important variable in investor’s perception.

(Gagan Kukreja, 2012) has found in his research that age, educational qualification, tax

advantages,liquidity and investment attributes are mediating factor for investors’ perception.

Investment influences and investment benefits are having high relevance.

(Shalini R, Kiran Hiremath , Dr. Poornima Charantimath ) concluded their research with the help

of perpetual mapping to investigate the investor perception for the investment in various alternatives.

Investors shows their faith in POD, government securities and they won’t get secured feeling towards


other instruments and they are lack of awareness about the other investment instrument and also

suggested to promote activities for the investment awareness highlighting liquidity, security and

returns.

(Lewellen, 1997) finds that demographic factors affect the investor preference and perception.

(V. Alagu Pandian, G.Thangadurai, 2013 ) observed the factor such as awareness, safety, liquidity,

capital appreciation, easily transferable, fixed income in the study entitled as “A Study of Investors

Preference towards Various Investments Avenues in Dehradun District” studied that various

factor influence the investor preference in selecting the suitable investment alternative every

alternative have their pro and cons. And at the end of study they concluded that “No pain no gain” it is

the golden principle of investment management. In the fast moving world, we can earn more and more

money. More risk leads to more profit. Investors cannot avoid risk but they can minimize the risk by

investing their money in various forms of investments so that they can get a moderate profit and most

of the researcher preferred the bank deposit as safest way for investment followed by gold.

(V. G. Murugan, 2012) observed that economics independence among the female is rather very low

and they participate in the investment decision in lower proportion and the earning capacity of the

household is another factor to be considered while analyzing the influence of various economic

factors on investor preferences and behavior in the study entitled as “ Investor attitude And also

concluded that the objective of motivating the public to invest their savings in the stock market will be

achieved only if the regulatory authorities succeed in providing a manipulation free stock market. With

the rate of interest offered by banks on deposits being very unattractive, more people could think of

investing in the stock market. This could happen only if the stock market is transparent and free from

scams because those who invest in bank deposits are basically averse to risk.

(Dr. R. Sellappan, Ms. S. Jamuna & Ms. Tnr. Kavitha,2013 ) observed in their study that married

women are more curious in making investment than unmarried and also stated that investment at

different life stage influences their investment decision.

(Heena Kothari) observed that the perception of varied age group investor who desired to invest in

different avenues which give you higher return and growth prospect.


( Dr. K. Sowmya , J. Mounika Reddy, 2016) observed the variable such as motives of

investment, awareness about the alternative, period of investment, occupation and educational

level as prime variable influences the investor perception towards the investment in the various

investment avenues and also concluded in their study entitled as “

A Study on Investors Perception towards Investment Avenues “ that the investors have different

views like investment pattern by market movement, factors influencing their decision, frequency of

investment, alternatives available and investment preferences truly influence their perception towards

different investments in market.

(Ashly Lynn Joseph, Dr. M. Prakash, 2014) finds the factors like demographic factors, education

level, occupation, income, awareness, preference to investment alternatives, period of investment,

risk, returns, purpose of investment, frequency of investment and concluded that all age group people

give first preference to bank deposists followed by Insurance and mutual funds due to less risk. Every

individual should be made aware about various investment avenues, its importance, advantages etc for

a secured future and also many more reasons.

(Parimalakanthi K. , Dr. M. Ashok Kumar 2015 ) In his research entitled as “A Study Pertaining

to Investment Behaviour of Individual Investors in Coimbatore City “ concluded that safety was

also a foremost preferred aspect in fixed income and investment for safety. Capital appreciation was

the foremost preferred aspect in long term investment. Additional income was the most preferred

aspect on liquidity investments. The factors namely gender and investment ratio in real estate

influences the investment behavior. Based on the study the government should make the policies for

the safety of investment and saving habits to be developed with Individuals at all levels rural or urban,

aged or young, male or female, married or spinster, low class or high class and so on. And the

demographic profile like gender, age, domicile, marital status, education, occupation, family type and

family size have significantly influences the investment behavior.

(Prof. Hardik Shah, Prof Rakesh Patel ) observed that the majority of the respondent are investing

their fund in Fixed Deposit followed by Mutual funds, real estates , gold/e-gold and NSC. Lesser

respondent invest in the equity, insurance and bonds. Maximum amount of investment is done in real

estate for the future option. And also observed that mutual fund is low popular due to certain factor

like lot size, entry and exit load, NAV value and also high risk low return formulation and concluded


that the selection of perfect alternative by the investor is difficult for the investor and there is a high

risk in the investing the fund in the shares and bonds.

(Dr. Unmekha Tare, Dr. Vishal Mehta) studied that there are various investment alternative

available to investor to invest as per need. And the management of an investment portfolio requires

knowledge, experience, constant research, appraisal of market. Investor should judge the alternative as

per their convenience and choice they select for investment.


Chapter 4


Objective of Study

Primary Objectives:

This research focused on number of factors that highlights the factors which affects the perception

of an investor towards the investment in various alternatives in the market.

Secondary Objectives

To find the factors which influences the investor’s perception while investing their funds in

different alternatives

To find the investor’s preferred alternative for the investment.

To find the motives behind the investment in preferred alternatives.


Research Design

A research design is a framework or plan for a study, used as a guide in collecting and

analyzing data. It is the blue print that is followed in completing the study. Research design is the

conceptual structure within which the research would be conducted. In this project I have conducted

descriptive research design. This design intended to provide accurate data description and relationship

between factors which influences the investor perception.

Research Methodology of the Research

Research Design

Exploratory Research

Primary Data

Secondary Data

Conclusive Research

Descriptive Research

Cross Sectional Design

Single Cross Sectional Design


1. Exploratory Design

One of the research designs, which provide insight information regarding the problem and also

provide understanding of the problem faced by the researcher. In the exploratory research

design, there are two types of methods to collect the insight information about the problem.

Primary Data

The primary data for the research is collected through structured questionnaire.

Secondary Data

The secondary data for the research is collected through published data by various authors

and information published on the internet.

2. Conclusive Research Design

It is one of the designs, which is used to conclude some result and give information for the

further research. In conclusive design I have used Descriptive Research.

In descriptive research, to collect the information from the respondents I have used Cross

Sectional Design.

In Cross Sectional Design, the information is collected only once from the respondents so I

preferred Single Cross Sectional Design to study the factor affecting the perception of investor

for investment in various alternatives.

For the descriptive research design mostly methods are available for collecting the information

are as below mentioned:

Surveys Method

It is based on the questioning of the respondent to obtaining information. For my

research I have used a well structured questionnaire to collect the information from

sample population.


3. Sampling Design

a. Target Population Definition

Target population:

Investors of Ahmedabad City

Sampling unit:

Investors of Ahmedabad City

Sampling element:

An Investor

Sampling frame:

Not available

Extent:

Ahmedabad, Gujarat, India

Time:

May-2016 to July-2016

b. Sampling method:

Non- Probability sampling: Convenience Sampling

I have used convenience sampling for the sampling of the respondent because target

population is unknown for the researcher and he doesn’t know who is perfect to be the

respondent and it is easy for researcher to target the respondent using convenience

sampling as the respondent are picked up unknowingly to observe their responses from

place like shop, mall, offices and from street. Because the respondent are known to

researcher and he don’t have any biased in taking response from them.

c. Sample size determination:

Tolerable error=(e)= 0.089

Confidence level=95%

Using Likert scale

Standard error=(σ) 5-1/6= 0.67

Sample size=(n)?

n= (Z)^2 * (σ)^2 / (e)^2

(1.65)^2 * (0.67)^2 / (.090)^2 = 150 samples


4. Scaling Techniques

Types of scaling methods:

Comparative scaling

Q- Sort

Non comparative scaling:

Likert scale

To measure the level of their perception for the observed factor, I have used Likert

scale because likert is 5 rating scale it is easy for the respondent to rate the factor

easily. And also have an option to stay neutral with the factor which doesn’t effects

its perception.

Using the likert scale it is easily for the respondent to rate the factor which is most

important and also influences their perception towards the investment in various

alternatives.

5. Data Collection Tool

Questionnaire

To get the response from number of respondent I have a well design and structured

questionnaire.

6. Data Collection Method

Survey using personal Interview and Telephonic Conversation.

7. Questionnaire Design

Structured questionnaire:

Dichotomous Questions, Question with Options and Scaling

Pretesting of Questionnaire :

Pretesting of Questionnaire is done by the Expert Investor and Mentor of Internship

Program

8. Data Analysis Software

Ms-Excel

SPSS


9. Data Analysis Techniques

Frequency Distribution

Descriptive Distribution

Reliability Test

Chi-Square Test

ANOVA Test

Independent T- Test


Chapter 5


5.1 Frequency Distribution and Descriptive Means Test

1. Age

Table 1 : Age Data Analysis

Frequency Percentage

Less than 20 years 7 4.7

21-40 Years 102 68

41-60 Years 38 25.3

More than 60 Years 3 2

Total 150 100

Figure Age of Respondents

Interpretation: It can be observed from the Study that Majority of the respondents belongs to Age

group of 21-40 Years (i.e. 68%, n=102) which means respondents are young in age which are followed

by age group of 41-60 Years (i.e. 25%, n=38). Only 7 and 3 respondents fall under the category of less

than 20 Years and more than 60 Years respectively.

5%

68%

25%

2%

Age

Less than 20 years

21-40 Years

41-60 Years

More than 60 Years


2. Gender

Table 2: Gender Data Analysis


Male 102 68.0

Female 48 32.0

Total 150 100

Figure Gender of Respondent

Interpretation: It can be clearly notice from above data that majority of respondents are Male i.e.

n=102 (68%) and females are only 32% (n=48) of whole sample population.

68%

32%

Gender

Male

Female


3. Marital Status

Table 3: Marital Status Data Analysis


Single 66 44.0

Married 84 56.0

Total 150 100

Figure Marital Status of Respondent

Interpretation: It can be clearly notice from above data that majority of respondents are Married i.e.

n=84 (56%) and Single 44% (n=66) of whole sample population.

44%

56%

Marital Status

Single

Married


4. Educational Qualification

Table 4: Educational Qualification Data of Respondent


Up to High School 33 22.0

Graduate 47 31.3

Post Graduate 59 39.3

Professional 11 7.3

Total 150 100

Figure Educational Qualification of Respondents

Interpretation: It can be observed from the survey of sample population that 40% (n=59) respondents

are occupying Post Graduate Degree followed by the respondent occupying Bachelors degree i.e. 40%

(n=47). Study also shows that 22% (n=33) are not so educated and only 7% (n=11) of the respondents

are professional degree occupier.

22%

31%

40%

7%

Educational Qualification

High School

Graduate

Post Graduate

Professional


5. Occupation

Table 5: Occupation of Respondents


Services 48 32.0

Business 56 37.3

Students 35 23.3

Retired 3 2.0

Professional 3 2.0

Housewife 5 3.3

Total 150 100

Figure Occupation of Respondents

Interpretation: Above figure and table shows that Majority of the respondents are Businessman

(n=56, 38%) which are followed by respondents preferring to do Service in various sectors (n=48,

32%). It can be also observed from the table that 23% (n=35)of the respondents are students which can

be turned into businessman or service sector. Only 3% (n=5) are housewife and 2% are professional,

2% (n=3) retired.

32%

38%

23%

2% 2%

3%

Occupation

Services

Business

Student

Retired

Professional

Housewife


6. Monthly Income

Table 6: Monthly Income Data of Respondent


Less than 10000 42 28

10001-25000 36 24

250001-50000 24 16

More than 50000 48 32

Total 150 100

Figure Monthly Income of Respondents

Interpretation: It can seen from above chart and table that most of the respondents are earning more

than 50000 (i.e. n=48 , 32%) as they are having their own business followed by people earning less

than 10000 per month as they are at start up of their career (n=42,28%). Respondent who are earning

in between 10001-25000 are at growing stage in the career or in professional segment (i.e. n=36, 24%)

and only 16% (n=24) respondents are earning 250001-50000 per month as most of respondents are

belonging to government sectors are they are having their own small business as a sources of income.

28%

24% 16%

32%

Monthly Income

Less than 10000

10001-25000

250001-50000

More than 50000


7. Percentage of Income used for Investment Purpose

Table 7: % of Income used for Investment


Less than 10% 78 52.0

11-25 % 35 23.3

26-40% 11 7.3

More than 40% 26 17.3

Total 150 100

Figure: % of Income used for Investment Purpose by Respondents

Interpretation: It can be seen from the table of % of Income used for investment purpose by the

respondents that majority of the respondents are using less than 10% (n=78, 52%) of their income for

investment purpose in their preferred investment alternative as they are suffered by High Inflation rate

followed by the respondents spending 11-25% of their monthly income for investment purpose (n=35).

The respondent who are earning high are spending more than 40% (n=26) of their income in various

alternative with various motives. There are only 8% of respondents who are investing 26-40% of their

income for investment.

52%

23%

8%

17%

% of Income Used for Investment

Less than 10

11-25

26-40

More than 40


8. Preferred Period of Investment

Table 8: Preferred Period of Investment


Less than an year 60 40

1-5 Years 48 32

6-10 Years 32 21.3

11-15 Years 6 4.0

More than 15 Years 4 2.7

Total 150 100

Figure Preferred Period of Investment by Respondents

Interpretation: It can be seen from the responses of the respondents that majority of the respondents

are investing their funds for less than year period preferring bank deposit, fixed deposit (n=60,40%)

followed by the respondents preferring period of investment as 1-5 years which may consist of

moderate investment alternative or high investment alternative (i.e. n=48, 32%). Respondents are also

preferring to investment their fund for 6- 10 years which may consist of real estate or precious metals

(n=32, 21%). Only 3% of the respondent of the survey are investing their funds for more than 15 years

(n=4) with the motive of long term investment in shares or in real estate.

40%

32%

21%

4%

3% Preferred Period of Investment

Less than an year

1-5 Years

6-10 Years

11-15 Years

More than 15 years


9. Awareness about the Investment Alternatives.

Table 9: Awareness about Investment Alternatives

Number of

Respondents

Mean of Responses

Low Investment Alternative 150 1.3000

Moderate Investment Alternative 150 1.7867

High Investment Alternative 150 1.9933

Traditional Investment Alternatives 150 1.3800

Emerging Investment Alternatives 150 2.4933

Figure: Awareness about Investment Alternatives.

Interpretation: As it can be observed from the bar chart and table of responses, respondents are aware

about the low investment alternative followed by the respondent having awareness about the

traditional investment alternative such as gold and real estate. Respondents are somewhat aware about

moderate and High Investment alternative but respondents are totally unaware about the emerging

investment alternatives which can give more returns against their investment. So the researcher should

provide information about the emerging investment alternative.

0

0.5

1

1.5

2

2.5

3

Low Investment Alternative

Moderate Investment Alternative

High Investment Alternative

Traditional Investment Alternatives

Emerging Investment Alternatives


10. Preferred Investment Alternative by Respondents

Table 10: Data about the Respondents preferred investment Alternative

Alternative Fixed

Deposit

Bank

Deposit

Government

Securities

Insurance Mutual

Funds

Bonds Equity

Means 2.1733 1.5400 2.8133 1.9867 2.8733 3.9933 3.2133

Rank 3 1 6 2 7 10 8

NSC Commodity Forex

market

Gold Real

Estate

Hedge

Fund

Venture

Capital

Art/

Passion

3.4133 4.2000 4.5000 2.4067 2.5933 4.3000 4.5667 4.6600

9 11 13 4 5 12 14 15

Figure: Response about the Respondents preferred investment Alternative

Interpretation: It can be seen from the means values of the investment preference about various

Investment alternative that majority of the respondents are preferring Bank Deposit, Insurance, Fixed

Deposit, gold and real estate as their first priority for investment and it can also be observed that

people won’t prefers emerging investment alternative and forex, commodity market due to lack of

knowledge and high risk. Respondents also prefer government securities, equity to earn more profit.

0.0000

0.5000

1.0000

1.5000

2.0000

2.5000

3.0000

3.5000

4.0000

4.5000

5.0000

Preferred Investment Alternative


11. Factors affecting Investor’s Perception

Table 11: Descriptive Statistics for factor affecting Investor Perception

N Minimum Maximum Mean Std. Deviation

Statistic Statistic Statistic Statistic Std. Error Statistic

Risk 150 1.00 5.00 4.1133 .09900 1.21256

Returns 150 1.00 5.00 4.1733 .08553 1.04751

Liquidity 150 1.00 5.00 3.5467 .09249 1.13271

Company Reputation 150 1.00 5.00 3.4800 .10307 1.26236

Safety of Funds 150 1.00 5.00 4.1600 .10148 1.24286

Growth of Funds 150 1.00 5.00 4.2000 .08670 1.06185

Income 150 1.00 5.00 3.8000 .10056 1.23158

Past Experience 150 1.00 5.00 3.1733 .11653 1.42719

Needs 150 1.00 5.00 3.7600 .10814 1.32442

Valid N (list wise) 150

Figure: factor affecting Investor Perception

Interpretation: Investment decisions of the investor are affected by many factors which include

demographic factors, personal intentions and many more. But in study it can be observed that factors

like Safety of funds (4.1600), Growth (4.2000) , Risk(41133) and returns (4.1733) against the

invested funds affects the investor perception and Income (3.800), Needs (3.7600),Liquidity (3.5467)

also play vital role while taking decision about investment.

4.1133 4.1733 3.5467 3.4800

4.1600 4.2000 3.8000

3.1733 3.7600

Risk Returns Liquidity Company Reputation

Safety of Funds

Growth of Funds

Income Past Experience

Needs

Factor Affecting Investor Perception


12. Motives of Investment

Table 12 :Descriptive Statistics for Motives of Investment



Regular Income 150 1.00 5.00 4.4067 .08143 .99729

Tax Benefits 150 1.00 5.00 3.7600 .09862 1.20780

Capital Gain 150 1.00 5.00 3.6933 .10700 1.31050

Other Purposes 150 1.00 5.00 3.6400 .11519 1.41079

Futuristic Goal 150 1.00 5.00 3.9200 .10849 1.32867

Long Term

Investment 150 1.00 5.00 3.5667 .12240 1.49907

Expertise 150 1.00 5.00 2.2667 .12065 1.47765

Diversification of

Funds 150 1.00 5.00 3.8733 .10069 1.23319

Profit 150 1.00 5.00 4.3933 .08613 1.05485

Valid N (listwise) 150

Figure: Motives of Investment

Interpretation: It can be observed from the response of the respondent that prime motive of investor

behind the investment is to get Regular Income, Profit , Capital Gain followed by motive to achieve

their futuristic goal of life, tax benefits and more. Only some of the respondents are investing to get

Expertise in the investment alternative.

4.4067 3.7600 3.6933 3.6400 3.9200

3.5667

2.2667

3.8733 4.3933

Regular Income Tax Benefits Capital Gain Other Purposes Futuristic Goal Long Term Investment

Expertise Diversification of Funds

Profit

Motives of Investment


13. Sources of Information which affects the Investor’s Perception

Table 13 : Sources of Information which affect Investor’s Perception



Media & Newspaper 150 1.00 5.00 3.5200 .09351 1.14529

Word of Mouths 150 1.00 5.00 3.9733 .09919 1.21482

Internet 150 1.00 5.00 3.3467 .09785 1.19836

Own Analysis 150 1.00 5.00 4.3600 .08042 .98499

Valid N (list wise) 150

Figure: Sources of Information which affect Investor’s Perception

Interpretation: While investing our fund, respondents are taking knowledge about the available

alternative from various sources such as Media (Television, Radio) Printed Material (Daily

Publications, Newspapers, Pamphlets) Internet (Pop Up Ads, Websites, Blog) and Own Analysis. But

the study shows that Own Analysis about the investment (4.3600) and word of mouth (3.9733) from

others affects the investment decision followed by Newspapers and Internet.

3.5200 3.9733

3.3467

4.3600

Media & Newspaper Word of Mouths Internet Own Analysis

Factor Affecting Investment Decision


14. Investment Alternative which give high return against Investment.

Table 14: Investment Alternative which Gives High Returns


Low Investment Alternative 44 29.3

Moderate Investment Alternative 11 7.3

High Investment Alternative 38 25.3

Traditional Investment Alternatives 56 37.3

Emerging Investment Alternatives 1 0.7

Total 150 100

Figure: Investment Alternative which Gives High Returns

Interpretation: According to the study, Most of respondent thinks that Traditional Investment

Alternative (n=56, 38%) gives more returns against their invested fund followed by the Low

Investment Alternative (n=44, 29%) because they don’t have any knowledge regarding the returns and

investment in other alternative which can provide more returns. Only 1% is getting high return against

the investment from Emerging Investment alternative.

29%

7%

25%

38%

1% High Return Alternatives

Low Investment Alternative

Moderate Investment Alternative

High Investment Alternative

Traditional Investment Alternatives

Emerging Investment Alternatives


15. Suggested to other

Table 15: Suggested to Other Data Analysis


Yes 105 70

No 19 12.7

May Be 26 17.3

Total 150 100

Figure: Suggested to Other Data Analysis

Interpretation: It is revealed from the above data that respondent will suggest other to investment

their fund in the alternative where they are investing their funds followed by respondent who are

confused weather they will suggest or not.

Yes 70%

No 13%

May Be 17%

Suggested to Other


Reliability Statistics:

Reliability analysis allows the researcher to determine the extent to which a scale produces consistent

results if the measurements are repeated. Cronbach's alpha is a statistic used to determine the internal

consistency, so Cronbach's alpha increases as the inter-correlations among the items included in the

analysis increase. If the questions on the survey or items being tested have very high inter-correlations,

the questions are considered to be measuring different dimensions of the same construct. Generally,

the value of Cronbach’s Alpha equal to 0.700 or above is considered acceptable criteria for having the

internal consistency of the questions used in the study.

The reliability statistics for the factor which are included in the research are as follow:

Table 16: Reliability Test of the Scale included in the research.

No Scales

Included

Description Items Cronbach’s

Value

1 Awareness This scale measure the level of awareness about the

investment alternatives among the respondents of the

research

5 0.690

2 Preferred

Alternative

This scale measure the level of preference given by

respondent to the alternative while investing their

funds

15 0.798

3 Factors This scale measure the affect of various factors on

investor’s perception while they are investing their

fund in their preferred alternative.

9 0.739

4 Motives This scale measure the motives of investor behind the

investment in their preferred alternative

9 0.611

5 Sources of

Information

This scale measure the affect of various sources of

information on investor’s perception towards the

investment

4 .224


The result of reliability shows that the value of Cronbach’s alpha is more than 0.65 which means the

scales which are scoring more than 0.65 are reliable to conduct various test and Sources of Information

which is scoring less than Cronbach’s alpha 0.65 is not reliable for tests. Overall Cronbach’s alpha

value is more than 0.65 which shows that the entire variable included in the research are reliable to

conduct different tests.

Table 17: Overall value of Cronbach’s alpha

Reliability Statistics

Cronbach's Alpha N of Items

.730 43

Interpretation: The revealed result of reliability test for overall included scale in the research is

reliable for test as the value of Cronbach’s alpha is 0.730 which is more than 0.615. So the data is

reliable to perform other tests to conclude the result of the research.


5.2 Chi-Square Test:

H01: There is no association between Gender of Respondent and Percentage of Income used for

Investment.

H11: There is association between Gender of Respondent and Percentage of Income used for

Investment

Gender * Percentage of Income Used for Investment Cross tabulation

Count

Percentage of Income Used for Investment

Total Less than 10 11-25 26-40

More than

40

Gender Male 49 25 9 19 102

Female 29 10 2 7 48

Total 78 35 11 26 150

Chi-Square Tests

Value df Asymptotic Significance (2-sided)

Pearson Chi-Square 2.424a 3 .489

Likelihood Ratio 2.516 3 .472

Linear-by-Linear Association 1.603 1 .205

N of Valid Cases 150

a. 1 cells (12.5%) have expected count less than 5. The minimum expected count is 3.52.

Interpretation: It can be observed from the Chi-Square test that there is no association between

gender and percentage of income used for investment purpose as the P-value is greater than 0.05

which suggest the researcher to accept the Null Hypothesis and reject Alternative.


H02: There is no association between Age of Respondent and Percentage of Income used for

Investment.

H12: There is association between Age of Respondent and Percentage of Income used for Investment.

Age * Percentage of Income Used for Investment Cross tabulation

Count



More than

40

Age Less than 20

years 5 1 1 0 7

21-40 Years 56 25 7 14 102

41-60 Years 16 8 3 11 38

More than 60

Years 1 1 0 1 3

Total 78 35 11 26 150

Chi-Square Tests






a. 9 cells (56.3%) have expected count less than 5. The minimum expected count is .22.

Interpretation: It can be observed from the Chi-Square test that there is no association between age

and percentage of income used for investment purpose as the P-value is greater than 0.05 which

suggest the researcher to accept the Null Hypothesis and reject Alternative.


H03: There is no association between Marital Status of Respondent and Percentage of Income

used for Investment.

H13: There is association between Marital Status of Respondent and Percentage of Income used

for Investment.

Marital Status * Percentage of Income Used for Investment Cross tabulation

Count



More than

40

Marital

Status

Single 46 12 5 3 66

Married 32 23 6 23 84

Total 78 35 11 26 150

Chi-Square Tests

Value df

Asymptotic

Significance (2-sided)






Interpretation: It can be observed from the Chi-Square test that there is an association between

marital status and percentage of income used for investment purpose as the P-value is less than 0.05

which suggest the researcher to accept the Alternative hypothesis and reject null hypothesis.


H04: There is no association between Educational Qualification and Percentage of Income


H14: There is association between Educational Qualification and Percentage of Income used

for Investment.

Qualification * Percentage of Income Used for Investment Cross tabulation

Count


Total Less than 10 11-25 26-40 More than 40

Qualification High School 13 7 3 10 33

Graduate 24 11 5 7 47

Post Graduate 38 11 3 7 59

Professional 3 6 0 2 11

Total 78 35 11 26 150

Chi-Square Tests







Interpretation: It can be observed from the Chi-Square test that there is no association between

qualification and percentage of income used for investment purpose as the P-value is greater than 0.05

which suggest the researcher to accept the Null Hypothesis and reject Alternative.


H05: There is no association between Occupation of the respondent and Percentage of Income


H15: There is association between Occupation of the respondent and Percentage of Income used

for Investment.

Occupation * Percentage of Income Used for Investment Cross tabulation

Count



Occupation Services 30 13 1 4 48

Business 15 17 6 18 56

Student 29 2 4 0 35

Retired 1 2 0 0 3

Professional 1 1 0 1 3

Housewife 2 0 0 3 5

Total 78 35 11 26 150

Chi-Square Tests




Linear-by-Linear Association .904 1 .342




occupation and percentage of income used for investment purpose as the P-value is less than 0.05

which suggest the researcher to accept the Alternative hypothesis and reject null hypothesis.


H06: There is no association between Monthly Income and Percentage of Income used for

Investment.

H16: There is association between Monthly Income and Percentage of Income used for Investment.

Monthly Income * Percentage of Income Used for Investment Cross tabulation

Count



Monthly Income Less than 10000 34 4 3 1 42

10001-25000 26 8 0 2 36

250001-50000 8 10 5 1 24

More than 50000 10 13 3 22 48

Total 78 35 11 26 150

Chi-Square Tests








Monthly Income and percentage of income used for investment purpose as the P-value is less than

0.05 which suggest the researcher to accept the Alternative hypothesis and reject null hypothesis.


H07: There is no association between Preferred Period of Investment and Percentage of Income


H17: There is association between Preferred Period of Investment and Percentage of Income used

for Investment.

Preferred Period of Investment * Percentage of Income Used for Investment Cross tabulation

Count



Period of Investment Less than an year 46 6 3 5 60

1-5 Years 24 16 4 4 48

6-10 Years 8 12 0 12 32

11-15 Years 0 1 3 2 6

More than 15 years 0 0 1 3 4

Total 78 35 11 26 150

Chi-Square Tests








Period of Investment and percentage of income used for investment purpose as the P-value is less than

0.05 which suggest the researcher to accept the Alternative hypothesis and reject null hypothesis.


H08: There is no association between Qualification and Occupation of Respondent.

H18: There is association between Qualification and Occupation of Respondent.

Qualification * Occupation Cross tabulation

Count

Occupation

Total Services Business Student Retired Professional Housewife

Qualification High

School 3 25 2 2 0 1 33

Graduate 18 20 8 0 0 1 47

Post

Graduate 26 5 24 0 2 2 59

Professional 1 6 1 1 1 1 11

Total 48 56 35 3 3 5 150

Chi-Square Tests








qualification and occupation of respondent as the P-value is less than 0.05 which suggest the

researcher to accept the Alternative hypothesis and reject null hypothesis.


5.3 Independent T-Test for Factors affecting Investor’s Perception

While performing the Independent sample test, the researcher is assuming the value of equal

variance assumed. And all the results are based on the 2-tailed equal variance.

H01: Factors affecting investor’s perception are same for Male and Female respondent.

.H11: Factors affecting investor’s perception are not same for Male and Female respondent.

.

Independent Samples Test of Factor affecting Investor’s Perception and Gender.

Levene's Test

for Equality of

Variances t-test for Equality of Means

F Sig. T Df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference

95%

Confidence

Interval of the

Difference

Lower Upper

Risk Equal

variances

assumed

1.203 .274 .351 148 .726 .07475 .21287 -

.34590 .49541

Equal

variances

not

assumed

.363 100.573 .717 .07475 .20567 -

.33326 .48277

Returns Equal

variances

assumed

3.262 .073 1.395 148 .165 .25490 .18277 -

.10628 .61608

Equal

variances

not

assumed

1.311 79.433 .194 .25490 .19448 -

.13216 .64196

Liquidity Equal

variances

assumed

2.553 .112 .345 148 .730 .06863 .19885 -

.32433 .46159

Equal

variances

not

assumed

.359 101.890 .720 .06863 .19117 -

.31055 .44781

Company

Reputation

Equal

variances

assumed

.289 .591 .698 148 .487 .15441 .22134 -

.28298 .59180

Equal

variances

not

assumed

.683 87.478 .496 .15441 .22605 -

.29486 .60369

Safety of

Funds

Equal

variances

assumed

.899 .344 1.944 148 .054 .41912 .21554 -

.00682 .84505


Equal

variances

not

assumed

1.876 84.423 .064 .41912 .22341 -

.02513 .86336

Growth of

Funds

Equal

variances

assumed

.014 .906 1.255 148 .211 .23284 .18550 -

.13373 .59942

Equal

variances

not

assumed

1.212 84.672 .229 .23284 .19204 -

.14900 .61469

Income Equal

variances

assumed

2.338 .128 -.227 148 .821 -.04902 .21626 -

.47637 .37833

Equal

variances

not

assumed

-.233 98.656 .816 -.04902 .21052 -

.46675 .36871

Past

Experience

Equal

variances

assumed

.507 .478 .774 148 .440 .19363 .25014 -

.30069 .68794

Equal

variances

not

assumed

.783 94.830 .436 .19363 .24731 -

.29735 .68461

Needs Equal

variances

assumed

.407 .525 .327 148 .744 .07598 .23252 -

.38350 .53546

Equal

variances

not

assumed

.320 87.314 .750 .07598 .23766 -

.39636 .54832


Result Table for Independent T-Test between Factor affecting Investor’s Perception and Gender.

Factor P Value Remarks Decision about the Hypothesis

Risk 0.726 Same H01Accepted and H11 Rejected

Return 0.165 Same H01Accepted and H11 Rejected

Liquidity 0.730 Same H01Accepted and H11 Rejected

Company Reputation 0.487 Same H01Accepted and H11 Rejected

Safety of Funds 0.054 Same H01Accepted and H11 Rejected

Growth 0.211 Same H01Accepted and H11 Rejected

Income 0.821 Same H01Accepted and H11 Rejected

Past Experience 0.440 Same H01Accepted and H11 Rejected

Needs 0.744 Same H01Accepted and H11 Rejected

Interpretation: It is revealed from the above tested data that there is no factor which affects the

investor’s perception while investing the fund in regard with Gender as all the P-value lies in the

acceptance region and the researcher has to accept the null hypothesis and reject alternative and

conclude that factors affecting investor’s perception are same for Male and female Respondents.


H02: Factors affecting investor’s perception are same for married and single respondent.

.H12: Factors affecting investor’s perception are not same for married and single of respondent

Independent Samples Test between factor affecting Investor’s Perception and Marital Status

Levene's Test for

Equality of


F Sig. t Df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Risk Equal

variances

assumed

.262 .609 -

1.704 148 .091 -.33766 .19819 -.72931 .05398

Equal

variances not

assumed

-

1.696 137.027 .092 -.33766 .19915 -.73147 .05614

Returns Equal

variances

assumed

5.880 .017 -

3.316 148 .001 -.55303 .16680 -.88265

-

.22341

Equal

variances not

assumed

-

3.239 124.712 .002 -.55303 .17077 -.89101

-

.21505

Liquidity Equal

variances

assumed

6.595 .011 -

1.028 148 .305 -.19156 .18628 -.55967 .17656

Equal

variances not

assumed

-

1.049 147.140 .296 -.19156 .18261 -.55243 .16932

Company

Reputation

Equal

variances

assumed

.734 .393 .301 148 .764 .06277 .20828 -.34882 .47436

Equal

variances not

assumed

.304 143.520 .762 .06277 .20661 -.34562 .47116

Safety of

Funds

Equal

variances

assumed

31.304 .000 -

5.083 148 .000 -.96212 .18927

-

1.33613

-

.58811

Equal

variances not

assumed

-

4.817 102.770 .000 -.96212 .19975

-

1.35828

-

.56596


Growth of

Funds

Equal

variances

assumed

17.997 .000 -

5.447 148 .000 -.87121 .15995

-

1.18729

-

.55513

Equal

variances not

assumed

-

5.181 105.450 .000 -.87121 .16817

-

1.20464

-

.53778

Income Equal

variances

assumed

1.817 .180 -.506 148 .613 -.10281 .20309 -.50414 .29851

Equal

variances not

assumed

-.512 144.838 .609 -.10281 .20076 -.49962 .29399

Past

Experience

Equal

variances

assumed

1.289 .258 1.219 148 .225 .28571 .23437 -.17744 .74886

Equal

variances not

assumed

1.235 145.228 .219 .28571 .23143 -.17169 .74312

Needs Equal

variances

assumed

.004 .948 -

1.899 148 .059 -.41017 .21597 -.83696 .01661

Equal

variances not

assumed

-

1.899 139.525 .060 -.41017 .21605 -.83733 .01698


Result Table for Independent T-Test between Factor affecting Investor’s Perception and Marital

Status.

Factor P-Value Remarks Decision about the Hypothesis

Risk 0.091 Same H02Accepted and H12 Rejected

Return 0.001 Not Same H02Rejected and H12 Accepted

Liquidity 0.305 Same H02Accepted and H12 Rejected

Company Reputation 0.764 Same H02Accepted and H12 Rejected

Safety of Funds 0.000 Not Same H02Rejected and H12 Accepted

Growth 0.000 Not Same H02Rejected and H12 Accepted

Income 0.613 Same H02Accepted and H12 Rejected

Past Experience 0.225 Same H02Accepted and H12 Rejected

Needs 0.059 Same H02Accepted and H12 Rejected

Interpretation: It can be reveled from the Independent T-Test analysis that Return (p=0.001), Safety

(p=0.000) and Growth (p=0.000) are not same for married and single respondent which effect on

investor’s perception. And the researcher also accept the alternative hypothesis and reject null

hypothesis and which leads the researcher to conclude that Returns, Safety of funds and Growth of

funds affects the perception of married and single respondent .


5.4 ANOVA Tests between Demographic Factors and factor affecting investor’s

Perception

H01: There is no significant difference in factors affecting investor’s perception among all

Educational Qualification groups.

H11: There is a significant difference in factors affecting investor’s perception among all

Educational Qualification groups

ANOVA Analysis between Factor Affecting Investor’s Perception and Qualification Group

Sum of

Squares Df Mean Square F Sig.

Risk Between Groups .970 3 .323 .217 .885

Within Groups 218.103 146 1.494

Total 219.073 149

Returns Between Groups 4.189 3 1.396 1.280 .284

Within Groups 159.304 146 1.091

Total 163.493 149

Liquidity Between Groups 3.402 3 1.134 .882 .452

Within Groups 187.771 146 1.286

Total 191.173 149

Company Reputation Between Groups 3.167 3 1.056 .658 .579

Within Groups 234.273 146 1.605

Total 237.440 149

Safety of Funds Between Groups 13.195 3 4.398 2.960 .034

Within Groups 216.965 146 1.486

Total 230.160 149

Growth of Funds Between Groups 7.307 3 2.436 2.213 .089

Within Groups 160.693 146 1.101

Total 168.000 149

Income Between Groups .451 3 .150 .097 .961

Within Groups 225.549 146 1.545

Total 226.000 149

Past Experience Between Groups 5.586 3 1.862 .913 .437

Within Groups 297.907 146 2.040

Total 303.493 149

Needs Between Groups .625 3 .208 .117 .950

Within Groups 260.735 146 1.786

Total 261.360 149


Result of ANOVA of Factors affecting Investor Perception between all Qualification Groups.


Risk 0.885 Not Significant H01Accepted and H11 Rejected

Return 0.284 Not Significant H01Accepted and H11 Rejected

Liquidity 0.452 Not Significant H01Accepted and H11 Rejected

Company Reputation 0.579 Not Significant H01Accepted and H11 Rejected

Safety of Funds 0.034 Significant H01Rejected and H11 Accepted

Growth 0.089 Not Significant H01Accepted and H11 Rejected

Income 0.961 Not Significant H01Accepted and H11 Rejected

Past Experience 0.437 Not Significant H01Accepted and H11 Rejected

Needs 0.117 Not Significant H01Accepted and H11 Rejected

Interpretation: From the above result table, it can observed that safety of fund’s p-value is equal to

0.034 which is less than (alpha) 0.05 it means researcher accept the null hypothesis and reject

alternative which leads the researcher to conclude that out of all factors which affects the investor

perception safety of funds affects more than all other variables and other factors don’t have any

significant effect on investor’s perception in regard with educational qualification.


H02: There is no significant difference in factors affecting investor’s perception among all Income

group.

H12: There is a significant difference in factor affecting investor’s perception among all Income

groups.

ANOVA Analysis between Factors affecting Investor’s Perception and Income

Sum of

Squares df Mean Square F Sig.

Risk Between Groups 11.280 3 3.760 2.642 .052

Within Groups 207.794 146 1.423

Total 219.073 149


Within Groups 149.169 146 1.022

Total 163.493 149

Liquidity Between Groups 9.749 3 3.250 2.615 .053

Within Groups 181.425 146 1.243

Total 191.173 149

Company Reputation Between Groups 4.821 3 1.607 1.009 .391

Within Groups 232.619 146 1.593

Total 237.440 149


Within Groups 209.752 146 1.437

Total 230.160 149


Within Groups 146.460 146 1.003

Total 168.000 149

Income Between Groups 19.593 3 6.531 4.620 .004

Within Groups 206.407 146 1.414

Total 226.000 149

Past Experience Between Groups 29.045 3 9.682 5.150 .002

Within Groups 274.448 146 1.880

Total 303.493 149

Needs Between Groups 3.421 3 1.140 .645 .587

Within Groups 257.939 146 1.767

Total 261.360 149


Result of ANOVA of Factors affecting Investor Perception and Income

Interpretation: from the above result table of ANOVA test between factors affecting investor’s

perception and monthly income of the respondents of the survey that factors such as Returns

(p=0.004), Safety of funds (p=0.004), Growth (p=0.000), Income (p=0.004) and Past experience

(p=0.002) has a significant effect on investor’s perception in regard with Income of respondent and in

all values which score less than alpha value (0.05) the researcher accepts the Alternative hypothesis

and rejects Null hypothesis.



Return 0.004 Significant H02Rejected and H12 Accepted




Growth .000 Significant H02Rejected and H12 Accepted

Income 0.004 Significant H02Rejected and H12 Accepted

Past Experience 0.002 Significant H02Rejected and H12 Accepted



H03: There is no significant difference in factors affecting investor’s perception among all Percentage

of Income used for Investment Purpose group.

H13: There is a significant difference in factor affecting investor’s perception among all Percentage of

Income used for Investment Purpose group.

ANOVA Analysis between factor affecting Investor’s Perception and Percentage of Income used for Investment

Sum of Squares df Mean Square F Sig.


Within Groups 211.820 146 1.451

Total 219.073 149


Within Groups 159.827 146 1.095

Total 163.493 149


Within Groups 179.505 146 1.229

Total 191.173 149


Within Groups 230.775 146 1.581

Total 237.440 149


Within Groups 219.161 146 1.501

Total 230.160 149


Within Groups 160.196 146 1.097

Total 168.000 149


Within Groups 211.805 146 1.451

Total 226.000 149


Within Groups 273.801 146 1.875

Total 303.493 149

Needs Between Groups 6.974 3 2.325 1.334 .266

Within Groups 254.386 146 1.742

Total 261.360 149


Result of ANOVA of Factors affecting Investor Perception and Percentage of Income used for

Investment Purpose.



Return 0.345 Not Significant H03Accepted and H13 Rejected

Liquidity 0.026 Significant H03Rejected and H13 Accepted


Safety of Funds 0.067 Not Significant H03Accepted and H13 Rejected

Growth 0.073 Not Significant H03Accepted and H13 Rejected




Interpretation: It can be reveled from the ANOVA analysis that Liquidity (p=0.026), Income

(p=0.023) and Past Experience (p=0.002) has a significant effect on investor’s perception in regards

with percentage of income used for investment purpose by the respondent. And researcher also accept

the alternative hypothesis and reject null hypothesis and which leads the researcher to conclude that

Liquidity, Income and Past Experience affects in investor’s perception.


H04: There is no significant difference in factors affecting investor’s perception among all Preferred

Period of Investment groups.

H14: There is a significant difference in factors affecting investor’s perception among all Preferred

Period of Investment groups.

ANOVA Analysis between Factor affecting Investor’s Perception and Preferred Period of Investment

Sum of



Within Groups 210.635 145 1.453

Total 219.073 149


Within Groups 147.265 145 1.016

Total 163.493 149


Within Groups 182.775 145 1.261

Total 191.173 149

Company Reputation Between Groups 3.738 4 .934 .580 .678

Within Groups 233.702 145 1.612

Total 237.440 149


Within Groups 216.879 145 1.496

Total 230.160 149


Within Groups 156.931 145 1.082

Total 168.000 149


Within Groups 209.219 145 1.443

Total 226.000 149


Within Groups 289.469 145 1.996

Total 303.493 149

Needs Between Groups .252 4 .063 .035 .998

Within Groups 261.108 145 1.801

Total 261.360 149


Result of ANOVA of Factors affecting Investor Perception and Preferred Period of Investment






Safety of Funds 0.070 Not Significant H04Accepted and H14 Rejected

Growth 0.041 Significant H04Rejected and H14 Accepted


Past Experience 0.141 Not Significant H04Accepted and H14 Rejected


Interpretation: It can be reveled from the ANOVA analysis that Return (p=0.004), Income

(p=0.024) and Growth (p=0.041) has a significant effect on investor’s perception in regards with

preferred period of investment by the respondent of the survey. And the researcher also accept the

alternative hypothesis and reject null hypothesis and which leads the researcher to conclude that

Returns, Income and Growth of funds affects in investor’s perception.


H05: There is no significant difference in factors affecting investor’s perception among all Occupation

groups.

H15: There is a significant difference in factors affecting investor’s perception among all Occupation

group.

ANOVA Analysis of Factor affecting Investor’s Perception between all Occupation groups

Sum of



Within Groups 201.508 144 1.399

Total 219.073 149


Within Groups 148.165 144 1.029

Total 163.493 149


Within Groups 166.055 144 1.153

Total 191.173 149


Within Groups 226.442 144 1.573

Total 237.440 149


Within Groups 175.790 144 1.221

Total 230.160 149


Within Groups 149.180 144 1.036

Total 168.000 149


Within Groups 215.362 144 1.496

Total 226.000 149


Within Groups 274.713 144 1.908

Total 303.493 149

Needs Between Groups 3.673 5 .735 .411 .841

Within Groups 257.687 144 1.789

Total 261.360 149


Result of ANOVA of Factors affecting Investor Perception between all Occupation groups.


Risk 0.033 Significant H05Rejected and H15 Accepted


Liquidity 0.001 Significant H05Rejected and H15 Accepted



Growth 0.004 Significant H05Rejected and H15 Accepted

Income 0.220 Not Significant H05Accepted and H15 Rejected



Interpretation: It can be reveled from the ANOVA analysis that Risk (p=0.033), Return (p=0.014),

Liquidity (p=0.001), Safety (p=0.000), Past Experience (p=0.013) and Growth (p=0.004) has a

significant effect on investor’s perception in regards with occupation of the respondent. And the

researcher also accept the alternative hypothesis and reject null hypothesis and which leads the

researcher to conclude that Risk, Returns, Liquidity, Safety of funds, Past Experience and Growth of

funds affects in investor’s perception.


5.5 Independent T- test for Motives behind the Investment

H01: Motives behind the investment are same for Male and Female Respondents.

H11: Motives behind the investment are not same for Male and Female Respondents

Independent Samples Test Analysis Between Motives behind the Investment and Gender.

Levene's Test

for Equality

of Variances t-test for Equality of Means

F Sig. t df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Regular Income Equal

variances

assumed

.865 .354 1.323 148 .188 .23039 .17412 -.11370 .57448

Equal

variances

not

assumed

1.305 89.002 .195 .23039 .17658 -.12047 .58125

Tax Benefits Equal

variances

assumed

2.015 .158 2.275 148 .024 .47426 .20851 .06223 .88630

Equal

variances

not

assumed

2.213 86.116 .030 .47426 .21434 .04819 .90034

Capital Gain Equal

variances

assumed

.010 .920 1.650 148 .101 .37623 .22807 -.07447 .82692

Equal

variances

not

assumed

1.650 92.135 .102 .37623 .22808 -.07676 .82921

Other Purposes Equal

variances

assumed

1.275 .261 .958 148 .340 .23652 .24701 -.25160 .72464

Equal

variances

not

assumed

.936 87.022 .352 .23652 .25281 -.26597 .73901


Futuristic Goal Equal

variances

assumed

.226 .636 .679 148 .498 .15809 .23299 -.30232 .61850

Equal

variances

not

assumed

.683 93.615 .496 .15809 .23152 -.30163 .61781

Long Term

Investment

Equal

variances

assumed

2.309 .131 -.326 148 .745 -.08578 .26318 -.60586 .43429

Equal

variances

not

assumed

-.337 100.370 .737 -.08578 .25448 -.59065 .41908

Expertise Equal

variances

assumed

.038 .846 -

1.090 148 .277 -.28186 .25848 -.79264 .22892

Equal

variances

not

assumed

-

1.086 91.306 .280 -.28186 .25943 -.79716 .23344

Diversification

of Funds

Equal

variances

assumed

.007 .931 .697 148 .487 .15074 .21622 -.27655 .57802

Equal

variances

not

assumed

.690 89.863 .492 .15074 .21842 -.28320 .58467

Profit Equal

variances

assumed

.021 .885 .643 148 .522 .11887 .18500 -.24671 .48446

Equal

variances

not

assumed

.650 94.784 .517 .11887 .18294 -.24432 .48206


Result table of Independent Analysis between Motives behind the Investment and Gender.

Motives P-Value Decision about Hypothesis Remarks

Regular Income 0.188 H01Accepted and H11 Rejected Same

Tax Benefits 0.024 H01Rejected and H11Accepted Not Same

Capital Gain 0.101 H01Accepted and H11 Rejected Same

Other Purposes 0.340 H01Accepted and H11 Rejected Same

Futuristic Goal 0.498 H01Accepted and H11 Rejected Same

Long term Investment 0.745 H01Accepted and H11 Rejected Same

Expertise 0.277 H01Accepted and H11 Rejected Same

Diversification of Fund 0.487 H01Accepted and H11 Rejected Same

Profit 0.522 H01Accepted and H11 Rejected Same

Interpretation: It can be observed from above result table that the motives behind the investment is

Tax Benefits (p=0.024) which are scoring less than alpha-value (alpha=0.050) affects the investor’s

perception and the researcher can conclude that motive such as Tax benefit are not same for male and

female respondent.


H02: Motives behind the investment are same for married and single respondent.

H12: Motives behind the investment are not same for married and single respondent.

Independent Samples Test Analysis between Motives behind the Investment and Marital Status.

Levene's Test for

Equality of


F Sig. t df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Regular

Income

Equal

variances

assumed

4.810 .030 -

2.316 148 .022 -.37446 .16169 -.69398 -.05494

Equal

variances not

assumed

-

2.271 127.492 .025 -.37446 .16489 -.70072 -.04819

Tax Benefits Equal

variances

assumed

.012 .913 -.838 148 .403 -.16667 .19887 -.55965 .22632

Equal

variances not

assumed

-.846 144.116 .399 -.16667 .19698 -.55601 .22267

Capital Gain Equal

variances

assumed

1.791 .183 -

1.482 148 .140 -.31818 .21470 -.74246 .10609

Equal

variances not

assumed

-

1.503 145.680 .135 -.31818 .21170 -.73659 .10022

Other

Purposes

Equal

variances

assumed

.398 .529 -

1.790 148 .076 -.41234 .23036 -.86756 .04288

Equal

variances not

assumed

-

1.811 144.859 .072 -.41234 .22771 -.86240 .03773

Futuristic

Goal

Equal

variances

assumed

.988 .322 -

2.093 148 .038 -.45238 .21611 -.87944 -.02532

Equal

variances not

assumed

-

2.080 136.239 .039 -.45238 .21745 -.88239 -.02237


Long Term

Investment

Equal

variances

assumed

7.435 .007 .284 148 .776 .07035 .24734 -.41843 .55913

Equal

variances not

assumed

.289 146.573 .773 .07035 .24310 -.41008 .55078

Expertise Equal

variances

assumed

.193 .661 3.262 148 .001 .76840 .23555 .30291 1.23388

Equal

variances not

assumed

3.266 140.293 .001 .76840 .23530 .30322 1.23358

Diversification

of Funds

Equal

variances

assumed

.507 .478 -

2.110 148 .037 -.42316 .20053 -.81944 -.02688

Equal

variances not

assumed

-

2.109 139.328 .037 -.42316 .20068 -.81994 -.02638

Profit Equal

variances

assumed

11.231 .001 -

3.556 148 .001 -.59416 .16710 -.92437 -.26394

Equal

variances not

assumed

-

3.423 114.094 .001 -.59416 .17360 -.93805 -.25026


Result of Independent Analysis between Motives behind the Investment and marital status.


Regular Income 0.022 H02Rejected and H12Accepted Not Same

Tax Benefits 0.403 H02Accepted and H12 Rejected Same

Capital Gain 0.140 H02Accepted and H12 Rejected Same

Other Purposes 0.076 H02Accepted and H12 Rejected Same

Futuristic Goal 0.038 H02Rejected and H12Accepted Not Same

Long term Investment 0.776 H02Accepted and H12 Rejected Same

Expertise 0.001 H02Rejected and H12Accepted Not Same

Diversification of Fund 0.037 H02Rejected and H12Accepted Not Same

Profit 0.001 H02Rejected and H12Accepted Not Same

Interpretation: It can be observed from above result table that the motives like Regular Income

(p=0.022), Futuristic Goal (p=0.038), Expertise (p=0.001), Diversification of funds (p=0.037) and

Profit (p=0.001) are not same for married and single respondent. And researcher can conclude that

motives behind the investment scoring less than the alpha-value are not same for married and single

respondent and he will accept the alternative hypothesis and reject null hypothesis.


5.6 ANOVA Test Between Demographic factors and Motives behind the

Investment.

H01: There is no significance difference in motives behind the investment among all age groups.

H11: There is significance difference in motives behind the investment among all age groups.

ANOVA Analysis between Motives behind the Investment and All age group.

Sum of


Regular Income Between Groups 1.533 3 .511 .509 .677

Within Groups 146.660 146 1.005

Total 148.193 149

Tax Benefits Between Groups 4.808 3 1.603 1.101 .351

Within Groups 212.552 146 1.456

Total 217.360 149

Capital Gain Between Groups 6.020 3 2.007 1.173 .322

Within Groups 249.873 146 1.711

Total 255.893 149

Other Purposes Between Groups 6.392 3 2.131 1.072 .363

Within Groups 290.168 146 1.987

Total 296.560 149

Futuristic Goal Between Groups 11.463 3 3.821 2.217 .089

Within Groups 251.577 146 1.723

Total 263.040 149

Long Term Investment Between Groups .038 3 .013 .006 .999

Within Groups 334.795 146 2.293

Total 334.833 149

Expertise Between Groups 21.242 3 7.081 3.400 .020

Within Groups 304.091 146 2.083

Total 325.333 149

Diversification of

Funds

Between Groups 2.650 3 .883 .576 .632

Within Groups 223.943 146 1.534

Total 226.593 149

Profit Between Groups 8.596 3 2.865 2.661 .050

Within Groups 157.197 146 1.077

Total 165.793 149


Result Table for Anova Analysis between Motives behind the Investment and Age


Regular Income 0.677 H01Accept and H11Rejected Not Significant

Tax Benefits 0.351 H01Accept and H11Rejected Not Significant

Capital Gain 0.322 H01Accept and H11Rejected Not Significant

Other Purposes 0.363 H01Accept and H11Rejected Not Significant

Futuristic Goal 0.089 H01Accept and H11Rejected Not Significant

Long term Investment 0.999 H01Accept and H11Rejected Not Significant

Expertise 0.200 H01Accept and H11Rejected Not Significant

Diversification of Fund 0.632 H01Accept and H11Rejected Not Significant

Profit 0.050 H01Rejected and H11Accepted Significant

Interpretation: It can be observed from the result table of ANOVA analysis between motives behind

the investment and age of the respondent, the researcher found that Profit (p=0.050) is the only motive

which affects the investor’s perception towards the investment in their preferred alternative and rest all

motive won’t affects the investor’ perception. For profit which is scoring p-value equal to 0.050 the

researcher will accept the alternative hypothesis and for rest all he will accept null hypothesis.


H02: There is no significance difference in motives behind the investment among all qualification

groups.

H12: There is significance difference in motives behind the investment among all qualification groups.

ANOVA Analysis between Motives behind Investment and Qualification.

Sum of


Regular Income Between Groups 4.747 3 1.582 1.610 .189

Within Groups 143.447 146 .983

Total 148.193 149


Within Groups 212.565 146 1.456

Total 217.360 149


Within Groups 238.436 146 1.633

Total 255.893 149

Other Purposes Between Groups 3.760 3 1.253 .625 .600

Within Groups 292.800 146 2.005

Total 296.560 149

Futuristic Goal Between Groups 3.745 3 1.248 .703 .552

Within Groups 259.295 146 1.776

Total 263.040 149

Long Term Investment Between Groups 19.873 3 6.624 3.071 .030

Within Groups 314.960 146 2.157

Total 334.833 149


Within Groups 302.928 146 2.075

Total 325.333 149

Diversification of

Funds

Between Groups 8.664 3 2.888 1.935 .127

Within Groups 217.929 146 1.493

Total 226.593 149


Within Groups 162.325 146 1.112

Total 165.793 149


Result Table for Anova Analysis between Motives behind the Investment and Qualification


Regular Income 0.189 H02Accepted and H12 Rejected Not Significant

Tax Benefits 0.352 H02Accepted and H12 Rejected Not Significant

Capital Gain 0.016 H02Rejected and H12 Accepted Significant

Other Purposes 0.600 H02Accepted and H12 Rejected Not Significant

Futuristic Goal 0.552 H02Accepted and H12 Rejected Not Significant

Long term Investment 0.030 H02Rejected and H12 Accepted Significant

Expertise 0.015 H02Rejected and H12 Accepted Significant

Diversification of Fund 0.127 H02Accepted and H12 Rejected Not Significant

Profit 0.377 H02Accepted and H12 Rejected Not Significant

Interpretation: It can be observed from above result table that the motives like Capital Gain

(p=0.016), Long Term Investment (p=0.030) and Expertise (p=0.015) scoring less than alpha-value

(alpha=0.050) are significantly affects the investor’s perception towards the investment in their

preferred alternative in regards with their educational qualification. And the researcher accepts the

alternative hypothesis and concludes that there is a significant difference in motives of investment and

their educational qualification.


H03 There is no significance difference in motives behind the investment among all occupation

groups.

H13: There is significance difference in motives behind the investment among all occupation groups.

ANOVA Analysis between Motives behind the Investment and Occupation

Sum of




Total 148.193 149


Within Groups 201.657 144 1.400

Total 217.360 149


Within Groups 241.171 144 1.675

Total 255.893 149

Other Purposes Between Groups 7.257 5 1.451 .722 .608

Within Groups 289.303 144 2.009

Total 296.560 149


Within Groups 235.630 144 1.636

Total 263.040 149

Long Term Investment Between Groups 4.264 5 .853 .371 .868

Within Groups 330.570 144 2.296

Total 334.833 149


Within Groups 296.242 144 2.057

Total 325.333 149

Diversification of

Funds

Between Groups 16.794 5 3.359 2.305 .047

Within Groups 209.799 144 1.457

Total 226.593 149


Within Groups 152.823 144 1.061

Total 165.793 149


Result Table for Anova Analysis between Motives behind the Investment and Occupation


Regular Income 0.001 H03Rejected and H13 Accepted Significant


Capital Gain 0.125 H03Accepted and H13 Rejected Not Significant


Futuristic Goal 0.007 H03Rejected and H13 Accepted Significant

Long term Investment 0.868 H03Accepted and H13 Rejected Not Significant


Diversification of Fund 0.047 H03Rejected and H13 Accepted Significant

Profit 0.037 H03Rejected and H13 Accepted Significant


(p=0.001), Futuristic Goal (p=0.007), Expertise (p=0.018), Diversification of Funds (p=0.047) and

Profit (p=0.037) which are scoring less than alpha-value (alpha=0.050) are significantly affects the

investor’s perception towards the investment in their preferred alternative in regards with their

occupation. And the researcher accepts the alternative hypothesis and concludes that there is a

significant difference in motives of investment and occupation of respondent.


H04 There is no significance difference in motives behind the investment among all income groups.

H14: There is significance difference in motives behind the investment among all income groups.

ANOVA Analysis between Motives behind the Investment and Income.

Sum of




Total 148.193 149


Within Groups 197.101 146 1.350

Total 217.360 149


Within Groups 229.231 146 1.570

Total 255.893 149

Other Purposes Between Groups 6.391 3 2.130 1.072 .363

Within Groups 290.169 146 1.987

Total 296.560 149


Within Groups 257.189 146 1.762

Total 263.040 149


Within Groups 324.990 146 2.226

Total 334.833 149


Within Groups 305.476 146 2.092

Total 325.333 149

Diversification of

Funds

Between Groups 28.439 3 9.480 6.984 .000

Within Groups 198.155 146 1.357

Total 226.593 149


Within Groups 152.362 146 1.044

Total 165.793 149


Result Table for Anova Analysis between Motives behind the Investment and Income.



Tax Benefits 0.002 H04Rejected and H14 Accepted Significant







Profit 0.006 H04Rejected and H14 Accepted Significant


(p=0. 198), Futuristic Goal (p=0.348), Other Purposes (p=0.363), Long Term Investment

(p=0.224) which are scoring more than p-value (p=0.050) are not so significant that they affects the

investor’s perception towards the investment in their preferred alternative in regards with their

monthly income. And the researcher accepts the null hypothesis and concludes that there is no

significant difference in motives behind the investment among all income group of respondent.


H05: There is no significance difference in motives behind the investment among all Percentage of

Income used for Investment Purpose groups.

H15: There is significance difference in motives behind the investment among all Percentage of

Income used for Investment Purpose groups.

ANOVA analysis between Motives behind Investment and Percentage used for Investment.

Sum of


Regular Income Between Groups 1.572 3 .524 .522 .668

Within Groups 146.622 146 1.004

Total 148.193 149


Within Groups 211.065 146 1.446

Total 217.360 149


Within Groups 245.217 146 1.680

Total 255.893 149

Other Purposes Between Groups 1.527 3 .509 .252 .860

Within Groups 295.033 146 2.021

Total 296.560 149

Futuristic Goal Between Groups 2.013 3 .671 .375 .771

Within Groups 261.027 146 1.788

Total 263.040 149


Within Groups 316.083 146 2.165

Total 334.833 149


Within Groups 311.441 146 2.133

Total 325.333 149

Diversification of

Funds

Between Groups 16.179 3 5.393 3.742 .013

Within Groups 210.414 146 1.441

Total 226.593 149


Within Groups 160.848 146 1.102

Total 165.793 149


Result Table for Anova Analysis between Motives behind the Investment and % of Income used for

Investment Purpose.




Capital Gain 0.100 H05Accepted and H15 Rejected Not Significant



Long term Investment 0.038 H05Rejected and H15 Accepted Significant

Expertise 0.094 H05Accepted and H15 Rejected Not Significant



Interpretation: It can be observed from above result table that the motives like Long term

investment (p=0.038) and Diversification of Funds (p=0.047) which are scoring less than alpha-

value (alpha=0.050) are significantly affects the investor’s perception towards the investment in their

preferred alternative in regards with their Percentage of Income used for investment purpose. And the

researcher accepts the alternative hypothesis and concludes that there is a significant difference in

motives behind the investment and percentage of income used for investment purpose by the

respondents.


H06: There is no significance difference in motives behind the investment among all Preferred Period

of Investment groups.

H16: There is significance difference in motives behind the investment among all Preferred Period of

Investment groups.

ANOVA Analysis between Motives Behind the investment and Preferred Period of Investment.

Sum of




Total 148.193 149


Within Groups 191.365 145 1.320

Total 217.360 149


Within Groups 239.302 145 1.650

Total 255.893 149

Other Purposes Between Groups .493 4 .123 .060 .993

Within Groups 296.067 145 2.042

Total 296.560 149

Futuristic Goal Between Groups 4.190 4 1.048 .587 .673

Within Groups 258.850 145 1.785

Total 263.040 149


Within Groups 316.608 145 2.184

Total 334.833 149

Expertise Between Groups 6.931 4 1.733 .789 .534

Within Groups 318.402 145 2.196

Total 325.333 149

Diversification of

Funds

Between Groups 9.568 4 2.392 1.598 .178

Within Groups 217.025 145 1.497

Total 226.593 149

Profit Between Groups 3.862 4 .966 .865 .487

Within Groups 161.931 145 1.117

Total 165.793 149


Result table of ANOVA Analysis between Motives behind the Investment and Preferred Period of

Investment.



Tax Benefits 0.001 H06Rejected and H16 Accepted Significant





Expertise 0.534 H06Accepted and H16 Rejected Not Significant

Diversification of Fund 0.178 H06Accepted and H16 Rejected Not Significant


Interpretation: It can be observed from above result table that the motives like Tax Benefits

(p=0.001) and Capital Gain (p=0.044) which are scoring less than alpha-value (alpha=0.050) are

significantly affects the investor’s perception towards the investment in their preferred alternative in

regards with their Preferred period of Investment. And the researcher accepts the alternative

hypothesis and concludes that there is a significant difference in motives behind the investment and

preferred period of investment by the respondents.


5.7 ANOVA Analysis between Demographic factors and Sources of Information

H01: There is no significance difference in sources of information among all age groups.

H11: There is significance difference in sources of information among all age groups.

ANOVA Analysis between sources of information and Age.

Sum of


Media & Newspaper Between Groups 2.371 3 .790 .598 .618

Within Groups 193.069 146 1.322

Total 195.440 149

Word of Mouths Between Groups .292 3 .097 .065 .978

Within Groups 219.601 146 1.504

Total 219.893 149

Internet Between Groups 5.247 3 1.749 1.223 .303

Within Groups 208.726 146 1.430

Total 213.973 149

Own Analysis Between Groups 9.301 3 3.100 3.346 .021


Total 144.560 149

Interpretation: It is found in the result that Own Analysis about the preferred investment alternative

affects the investor’s perception while investing their funds. For own analysis the researcher accept the

alternative hypothesis and reject null.


H02: There is no significance difference in sources of information among all qualification groups.

H12: There is significance difference in sources of information among all qualification groups.

ANOVA Analysis between sources of Information and Qualification of respondent.

Sum of


Media & Newspaper Between Groups 12.473 3 4.158 3.318 .022

Within Groups 182.967 146 1.253

Total 195.440 149

Word of Mouths Between Groups 3.152 3 1.051 .708 .549

Within Groups 216.741 146 1.485

Total 219.893 149


Within Groups 195.843 146 1.341

Total 213.973 149



Total 144.560 149

Interpretation: As per the table of Anova analysis between sources of information and qualification

of the respondent, the researcher found that as per the qualification the perception of investor changes

as per their source of information like Media & Newspaper (p=0.022) and Internet (p=0.005). These

two sources affect the investor’s perception while investing their fund in preferred investment

alternative with reference to qualification.


H03: There is no significance difference in sources of information among all occupation groups.

H13: There is significance difference in sources of information among all occupation groups

ANOVA Analysis between Sources of Information and Occupation of Respondent.

Sum of



Within Groups 182.393 144 1.267

Total 195.440 149

Word of Mouths Between Groups 10.999 5 2.200 1.516 .188

Within Groups 208.895 144 1.451

Total 219.893 149


Within Groups 200.309 144 1.391

Total 213.973 149



Total 144.560 149

Interpretation: From the above table of ANOVA analysis, it can be interpreted that there is no such

source of information which affect the investor’s perception in regarding with their occupation. All the

sources of information have p-value more than alpha value i.e. 0.050 so the researcher conclude that

there is no significance difference in sources of information among all occupation group.


H04: There is no significance difference in sources of information among all income groups.

H14: There is significance difference in sources of information among all income groups

ANOVA Analysis between Sources of Information and Income.

Sum of



Within Groups 190.990 146 1.308

Total 195.440 149

Word of Mouths Between Groups 4.628 3 1.543 1.046 .374

Within Groups 215.265 146 1.474

Total 219.893 149


Within Groups 206.195 146 1.412

Total 213.973 149



Total 144.560 149

Interpretation: It can be interpreted from the above table of ANOVA analysis that own analysis about

the preferred investment alternative affects the investor’s perception towards the investment. As own

analysis p-value (p=0.023) is less than 0.050. hence the researcher accepts it alternative hypothesis and

reject null hypothesis.


5.8 Findings:

1. Majority of the respondent are male followed by females.

2. Among all the respondents, most of the respondent belongs to age group of 21-40 years

followed by respondent of age group 41-60 Years.

3. Considering the Marital status of the respondent majority of the respondents is married.

4. Majority of the respondent are well educated possessing the Post Graduate level degree

followed by the respondent possessing Bachelor Degree.

5. It can be observed from the result that out of survey population most of the respondents are

Businessman followed by respondent preferring service in various sectors including financial

sector, government jobs and private jobs and the student are contributing 23% in the result

which latterly turn into businessman or service.

6. As the most of the respondents are businessman and government employee they are earning

monthly more than 50000 followed by respondents earning less than 10000 as they are at

startup of their career.

7. Most the respondent are able to spend less than 10% of their income for investment purpose.

8. All the investor preferring less than an year period for investment.

9. Majority of the respondents are highly aware about the low investment alternative which

includes Fixed Deposit, Bank Deposit and Insurance followed by the investors who are

investing their funds in traditional investment alternative consisting of investment in Precious

metals and real estate and they are unaware of other alternatives available in the market.

10. Majority of respondent are preferring Bank Deposit, Insurance ,Fixed Deposit followed by

Investment in Gold and property only some of the respondent are investing their fund in share

market consist of Equity shares, Commodity and the respondent having lot of surplus amount

they prefer venture capital.

11. It is also founded that Safety of fund, Growth of funds, Risk and return followed by Income,

Need of person and Liquidity affects the investor’s perception towards the investment in

various alternatives.

12. Researcher also found that Regular Income, Profit against investment, Capital Gain and tax

benefits are prime motive behind the investment in preferred alternative.

13. It is founded in the analysis that Own analysis about the preferred alternative affect the investor

decision of investment followed by internet and other sources of media.

14. According to respondents, Traditional investment alternative give more return against their

investment followed by Low Investment Alternative and High Investment Alternatives.


15. Most of the respondents suggest other also to invest their fund in alternative where they are

investing.

16. After performing all the tests, researcher can conclude that Safety, Income, Risk, Returns,

Growth of funds is affected by demographic factors of respondents.

17. Researcher also found the fact that there is an association between Occupation, Monthly

Income and Percentage of Income used for Investment Purpose.


Chapter 6


Conclusion

The study shows that respondent of the survey are investing their fund in preferred alternative which

comprises of Bank deposits, FDs, Insurance with prime motive of profit and regular income against

the investment. Females are less risk taker compare to male they want to investment their savings in

alternative which is quite safer for them. It is also revealed from the study that Risk, Returns, Safety of

funds, Growth are the major factors which affects the investors perception while investing their fund.

Motives like Tax benefits, Profit, Expertise and Capital gain are the factor which affects the investor

perception towards the investment in their preferred alternatives. Respondents are not aware about the

new trends and alternative for investment which can give more returns but to get higher return one

should take higher risk. The analysis of data and interpretation shows that awareness, suggestion from

others; own analysis, factors and motives affect the investor’s perception. The younger respondents

who started their services in various sector can start investing from now to meet their future needs and

also to fight against growing inflation.

They are acquiring knowledge about the investment alternatives with their advantages so they can

change their mind set about the high investment alternative consist of Equity market, commodity etc.

they can earn higher profit if they invest their fund with proper guidance.

Suggestions

One should acquire knowledge about the investment alternative available in Indian economy

system.

Bank and other companies should promote their investment product to existing clients as well

as to new client so they can earn more profit.

Government should promote campaign regarding the awareness program about the investment.

Government should maintain transparency while formulating their policy.

Broking Firms should start spreading awareness about the equity market as the investment

alternative rather than speculation.

People should start investing their fund for higher return in SIPs offered by different

companies.

People also start investing considering their future needs and requirement of fund.

Government should spread awareness regarding their new policy.


Chapter 7

Limitations


This research study suffers from the below mentions limitations:

1. As this research project is conducted in Ahmedabad city only, the survey may be not generalized to

whole population.

2. The respondents may be unwilling to spare some time to fill up the survey questionnaire.

3. Cost and time constraints.

4. Smaller sample size of the respondent.


Chapter 8


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http://www.moneycontrol.com/news/investing/risk-return-relationship-high-return-isrisk-

premium_931771.html?utm_source=ref_article


http://www.accaglobal.com/ng/en/student/exam-support-resources/professional-exams-study-

resources/p4/technical-articles/risk-return-relationship-part1.html

www.investopedia.com

www.angelbroking.com

www.wikipedia.com


Chapter 9


Questionnaire

I am Vinaysingh Tomar student of Centre for Management Studies, Ganpat University, Ahmedabad

studying in M.B.A. Sem. II (FS).I am conducting research project on “Indepth study of Investor’s

Perception towards the investment in Various Alternative“. So, I hope you will co- operate us in

filling this questionnaire. I assured you that the data provided by you will be kept confidential and will

be used only for the academic purpose only.

Demographic Information

1. Name :

2. Age :

Less than 20 years 21-40years 41-60 years More than 60 years

3. Gender :

Male Female

4. Marital Status

Single Married

5. Educational Qualification

Up to High School Graduate Post Graduate Professional

6. Occupation :

Services Business Student Retired Professional Housewife

7. Monthly Income :

Less than 10000 10001- 25000 25001-50000 More than 50000

8. Percentage of income used for investment purpose

Less than10 % 11-25% 26- 40 % More than 40%

9. Most Preferred Period of Investment

Less than 1year 1-5years 6-10years 11-15years more than 15years


Awareness & Preference Study

10. Are you aware about the investment alternatives available in Indian Market

Investment Alternative Totally Aware Somewhat Aware Not Aware

Low Investment Alternative – FD, bank

Deposits, NSC, Government Securities

Moderate Investment Alternatives –

Mutual Funds, Insurance, Bonds

High Investment Alternatives- Equity,

Commodity, FOREX Market

Traditional Investment Alternatives-

Gold & Silver , Real Estate

Emerging Investment Alternative –

Hedge Fund, Venture Capital,

Art/Passion

11. Which of the following Investment Alternative you preferred for Investment?

Investment Alternative Most Preferred Preferred Least Preferred Less Preferred Not Preferred

Fixed Deposit

Bank Deposit

NSC


Mutual Funds

Insurance

Bonds

Equity

Commodity

FOREX Market

Gold & Silver

Real Estates

Hedge Fund

Venture Capital

Art/Passion


Affecting factors and Motives of Investment

12. Rate the factor which affects your perception towards the investment of funds in various

alternatives. On Scale 5- Highly Agree 4- Agree 3 Neither Agree Nor Disagree 2- Disagree 1 –

Highly Disagree

Factor 1 2 3 4 5

I Believe that Risk affects my perception towards the

investment in preferred investment alternative.

I Believe that Returns affect my perception towards the

investment in preferred investment alternative

I Believe that Liquidity affect my perception towards the

investment in preferred investment alternative

I Believe that Company Reputation affect my perception

towards the investment in preferred investment alternative

I Believe that Safety of funds affects my perception

towards the investment in preferred alternative.

I Believe that Growth of funds affects my perception


I Believe that Income affects my perception towards the


I Believe that Past Experience affects my perception


I Believe that Needs affect my perception towards the


13. Rate the motives of investment in preferred Investment alternative on Likert Scale.

On Scale 5- Highly Agree 4- Agree 3 neither Agree nor Disagree 2- Disagree 1– Highly Disagree

Motives 1 2 3 4 5

I want to get Regular Income from investment

I want to get the Tax benefits against my investment

I want Capital Gain in my investment

I want that Other Purpose- Education, marriage of Children

of life is fulfilled by my investment returns.


I want to achieve my Futuristic Goals by investing now.

I Invest my funds for Long Term Investment purpose only

I want to have an Expertise in investment analysis.

I want Diversification of Funds through investment in various

alternatives.

I want to earn Profit against my investment.

14. Which is the source of information for the selection of Preferred Investment Alternatives?

On a Likert Scale 5- Highly Agree 4- Agree 3 neither Agree nor Disagree 2- Disagree 1 – Highly

Disagree

Sources of Information 1 2 3 4 5

I Believe that information from Media & Newspaper affects my

decision of investment

I Believe that Word of Mouth affects my decision of investment

I Believe that information available at Internet affects my

decision of investment

I Believe that Own Analysis affects my decision of investment

15. According to you, which alternative give more return against your investment?

Low Investment Alternative – FD, Bank Deposit, Government Securities

Moderate Investment Alternative – Mutual Funds, Insurance, Bonds

High Investment Alternative – Equity, Commodity, FOREX Market

Traditional Investment Alternative- Real Estate, Gold & Silver

Emerging Investment Alternative – Hedge Fund, Venture Capital, Art/Passion

16. Will you suggest other to investment in the alternative in which you are investing?

Yes No May Be

Thank You